Highlights

• Ucore Rare Metals has signed an MOU with Vacuumschmelze (VAC) to supply high-purity rare-earth oxides for permanent magnets used in EVs, wind turbines, and defense systems, creating a Western alternative to Chinese-dominated supply chains.
• The partnership leverages $111.9M in federal support for eVAC's South Carolina magnet plant and Ucore's $22.4M DoD-backed RapidSXT separation technology facilities in Louisiana and Ontario.
• Execution risks remain significant:
  • The nine-month MOU is non-binding.
  • Ucore's plants are still under construction with unproven commercial-scale output.
  • Substantial financing gaps must be resolved before 2026 commissioning targets.

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In a bold step toward Western rare-earth independence, Ucore Rare Metals Inc. (TSXV: UCU | OTCQX: UURAF) has entered a Memorandum of Understanding with Vacuumschmelze GmbH & Co. KG (VAC) and its U.S. affiliate eVAC Magnetics LLC to develop a long-term supply chain for high-purity rare-earth oxides (REOs).

The partnership bridges two crucial industrial stages. eVAC has completed a permanent-magnet plant in Sumter County, South Carolina, built with $111.9 million in federal tax credits and Defense Production Act Title III support. Ucore, meanwhile, is advancing its RapidSX™ separation technology through the Louisiana Strategic Metals Complex (SMC) and Commercial Demonstration Facility (CDF) in Kingston, Ontario.

If realized, Ucore will supply neodymium, praseodymium, terbium, dysprosium, samarium, and gadolinium oxides to VAC/eVAC—feeding the magnet lines that power EV motors, wind turbines, and defense systems.

The Upside: Building a Western Rare-Earth Backbone

This collaboration checks every geopolitical box. It aligns with U.S. and Canadian defense and clean-energy mandates, strengthens North American downstream processing, and pairs Ucore’s refining technology with a global magnet producer that already serves automotive, industrial, and military markets.

For Ucore, the deal provides a credible downstream anchor for its refining ambitions and validates RapidSX™ as a potential commercial platform. For VAC/eVAC, it secures a future non-Chinese oxide source—critical in a market still 90 % dependent on Chinese refining.

Investors have reason for optimism: Ucore’s DoD-backed funding now totals $22.4 million, and this alliance positions the firm squarely within Washington’s and Ottawa’s industrial-policy crosshairs.

The Downside: MOU Reality & Execution Risk

But caution is warranted. The agreement is not binding—the parties have nine months to finalize commercial terms. Ucore’s Louisiana and Ontario plants remain under construction, with no confirmed oxide output or pricing volumes. RapidSX™ must still prove large-scale viability, and significant financing remains unresolved.

Moreover, VAC’s European magnet facilities still depend on Chinese oxide inputs, meaning Western supply independence will be partial until Ucore’s feedstock comes online.

The Investor View

Ucore’s shares trade near multi-month support, suggesting investor patience tempered by proof-of-execution demands. Fundamentally, success hinges on commissioning Louisiana’s SMC by 2026 and converting this MOU into a definitive, revenue-linked contract.

The Bigger Picture

The Ucore–VAC alliance represents the strongest signal yet of a Western magnet corridor emerging across North America and Europe. If Ucore delivers, it could become a cornerstone of U.S. industrial policy—and a test case for rebuilding strategic supply chains once ceded to China.

Yet between vision and victory stands engineering, capital, and time.

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