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Pensana PLC on Wednesday said it signed an agreement with Vacuumschmelze GmbH & Co. KG to establish a mine-to-mine magnet supply chain in the US. Vacuumschmelze, a Hanau, Germany-based magnetic alloys manufacturer, has commissioned a rare earth magnet production facility, called eVAC, in Sumter, South Carolina. London-based Pensana said the memorandum of understanding includes a proposed offtake of products from Pensana’s Longonjo mine in Angola. This is to meet the deadline for the defence restrictions on rare-earth imports from China in 2027. Pensana said the proposed offtake would be for an initial five-year period, subject to extension and with pricing to be agreed. The agreement will also support the production by eVAC of 2,000 tonnes per annum of rare earth magnets initially rising to 12,000 tonnes per annum by 2029. Executive Chair of eVAC 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 U.S. International Development Finance Corporation’s unwavering support and partnership in this effort. ‘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.’ Pensana Chair 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 shares fell 1.1% to 131.00 pence each on Wednesday afternoon in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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