**Summary**
Pensana Plc has signed a Memorandum of Understanding (MOU) with Vacuumschmelze GmbH (VAC) to establish a mine-to-magnet supply chain in the United States. The partnership aims to bolster domestic rare-earth magnet production, critical for America’s national and economic security, particularly in meeting the 2027 defense restrictions on rare-earth imports from China.
Key terms of the MOU include
A five-year offtake agreement (with potential extension) for clean Mixed Rare Earth Carbonate (MREC) from Pensana’s Longonjo mine in Angola.
Support for VAC’s eVAC Magnetics facility in Sumter, South Carolina, to produce 2,000 tonnes of rare earth magnets annually, scaling up to 12,000 tonnes by 2029.
Strategic cooperation to secure the global rare earth value chain and explore joint opportunities.
Pensana’s Longonjo mine, one of the world’s largest undeveloped rare earth mines, is financed, under construction, and scheduled to begin production in early 2027, with plans to accelerate to late 2026. The mine will produce 20,000 tonnes of MREC annually, with a second phase expanding to 40,000 tonnes, representing 5% of global production.
VAC, a global leader in advanced magnetic solutions, brings over 100 years of expertise in rare earth magnet technology, ensuring North American supply continuity. The partnership underscores both companies’ commitment to sustainable and secure rare earth supply chains, supporting industries like e-mobility, automation, and robotics.
Pensana’s efforts have been recognized with sustainability awards, including a Gold Medal from EcoVadis, highlighting its commitment to responsible mining practices. This collaboration marks a significant step toward diversifying the Western supply chain for rare-earth minerals and reducing dependence on Chinese imports.