e-VAC Magnetics, part of Vacuumschmelze, has been awarded a $111.9 million Qualifying Advanced Energy Project Tax Credit to advance the construction of its first USA magnet manufacturing facility in Sumter, South Carolina. The facility was one of more than 100 projects to receive an award under the Section 48c program, which is designed to help accelerate domestic clean energy manufacturing and reduce greenhouse gas emissions at industrial facilities. In a related move, VAC also has partnered with Cyclic Materials in Canada for magnet recycling.
“e-VAC is proud to invest in America’s 21st century supply chain and to advance clean energy manufacturing efforts,” said Dr. Erik Eschen, CEO of VAC Group which is based in Hanau, Germany. “This award demonstrates the importance of high-quality, high-performance magnetic materials, which are key enablers to electrification and energy efficiency across a range of industries. Our facility will help to establish a resilient, U.S.-based supply chain for decades to come.”
In January last year, e-VAC announced a binding long-term supply agreement with GM to manufacture permanent magnets, using locally sourced raw materials, for the electric motors used in a broad portfolio of EVs in North America. In September 2023, the U.S. Department of Defense entered into an agreement with e-VAC as part of its ‘Mine-to-Magnet’ supply chain initiative, ensuring U.S. companies are able to source and produce the rare earth permanent magnets that are essential components in the F-35, Unmanned Aerial Vehicles, and numerous other defense systems.
In October 2023, VAC was acquired by Ara Partners, a private equity and infrastructure firm that specializes in industrial decarbonization investments. Ara’s investment has provided VAC with the capital for the expansion.
“The Inflation Reduction Act is helping companies invest in America and build critical domestic supply chains,” said Tuan Tran, Partner at Ara Partners. “Suppliers like e-VAC will play an important role in decarbonizing the industrial world, and we are committed to helping these companies expand their footprints here in the U.S. while substantially reducing emissions.”
Cyclic Materials and VAC Partner to Recycle Magnet Manufacturing By-products
In a separate deal, Vacuumschmelze and Cyclic Materials of Toronto, Canada have signed an agreement whereby Cyclic, a startup advanced metals recycling company, will work with VAC to recycle by-products containing critical materials used in high-performance permanent magnets. The partnership advances efforts to create a local and sustainable magnet supply chain, aligning with others that Cyclic has been making with magnet producers and auto manufacturers – and now for wind turbines and MRI machines also (see separate article in Magnetics Magazine).
“Cyclic Materials’ mission is to ensure all permanent magnets are recycled back into the supply chain, reducing the pressure to open new mines,” says Ahmad Ghahreman, co-founder and CEO of Cyclic. “Our partnership with VAC will bring us closer to achieving our goal. VAC will provide local sources of raw materials and decades of experience in rare earth magnet technology, making a western supply chain for rare earth elements possible.”
The companies have agreed to recycle by-products through Cyclic’s proprietary magnet recycling processes in North America. The joint effort will produce recycled raw materials that have as much as 75% lower carbon footprint compared to mined raw materials, thereby allowing VAC’s customers to source environmentally friendly rare earth magnets with lower emissions. Industries from wind energy to automobile manufacturers can then use these magnetic components to meet their net-zero production goals.
“We are proud to work with Cyclic Materials to advance circularity of the critical materials required for the energy transition,” said Eschen. “Our recycling partnership will ensure that critical materials remain local and re-enter our supply chains, providing key industries with the high-performance permanent magnets required to meet consumer demand and achieve global sustainability goals.”
For more info, see www.vacuumschmelze.com, www.arapartners.com and www.cyclicmaterials.earth.
