Pensana has entered into a memorandum of understanding (MoU) with Vacuumschmelze (VAC), initiating a partnership to establish a mine-to-magnet supply chain in the US.
With the recent launch of its eVAC magnetics facility in Sumter, South Carolina, VAC is contributing to the enhancement of domestic rare-earth magnet production in the US, which is essential for the country’s national and economic security.
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The MoU outlines key terms including the proposed offtake of mixed rare earth carbonate (MREC) from Pensana’s Longonjo mine, in response to US defence restrictions on rare earth imports from China by 2027.
The initial five-year offtake agreement, which includes an extension option, is designed to support eVAC’s production of 2,000 tonnes per annum (tpa) of rare earth magnets, with plans to scale up production to 12,000tpa by 2029.
The partnership aims to strengthen the global rare earth value chain and explore further joint opportunities.
eVAC executive chairman Troy Thacker said: “A new partnership between VAC and Pensana is a leap forward in the fight to strengthen and diversify the Western supply chain for rare earth minerals, and we are grateful for the Trump Administration’s and the US International Development Finance Corporation’s unwavering support and partnership in this effort.
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By GlobalData“This agreement not only reflects VAC’s commitment to building a complete mine-to-magnet supply chain that will meet the growing demands for rare earth materials but also illustrates how we will do so in a way that bolsters America’s national and economic security.”
VAC is known for its production of advanced magnetic solutions, which are integral to global decarbonisation efforts.
Pensana is focused on establishing a mine-to-magnet rare earth supply chain, aiming to support industries such as robotics, AI, advanced manufacturing and humanoid robots.
Pensana chairman Paul Atherley said: “We are delighted to be able to work with the eVAC team to establish a major mine-to-magnet supply chain in the US. The Longonjo mine is one of the world’s largest undeveloped rare earth mines and Vacuumschmelze is a global leader in rare earth permanent magnets.
“The Longonjo mine is financed, in construction and scheduled for the commencement of production in early 2027 with a 20-year mine life. We are looking at accelerating this production timeline to late 2026 and have committed to a major exploration programme to expand the resource inventory to meet the future demand for electric vehicle, automation and humanoid robots.”
Pensana is currently funding and constructing one of the world’s largest rare-earth mines in the Huambo district of Angola, with production expected to begin in early 2027.
The $217m (£162.53m) project will produce 20,000t of marketable clean MREC, with a potential second-phase expansion increasing production to 40,000tpa.
