Highlights

• eVAC Magnetics has shipped the first commercially-produced neodymium-iron-boron (NdFeB) permanent magnets made on U.S. soil in the 21st century, ending decades of production absence.
• The Sumter facility plans to reach 2,000 metric tons annual capacity by 2026, partnering with MP Materials' Mountain Pass mine to shorten the domestic value chain.
• While the shipment represents genuine capability and closes a critical manufacturing gap, scaling projections depend on future capital, partnerships, and sustained market demand.

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The announcement from Sumter, South Carolina is not just a corporate milestone. It is a signal flare in a supply chain long defined by absence. eVAC Magnetics, backed by Germany’s Vacuumschmelze (VAC) Group, privately held including private equity ownership, has shipped neodymium-iron-boron (NdFeB) permanent magnets for commercial use—produced on U.S. soil—for the first time in the 21st century according to the company’s press release, for a sector accustomed to press releases heavy on aspiration and light on throughput, an actual shipment matters.

This is not symbolism. It is inventory.

The Part That Rings True

On the core facts, the announcement holds. The United States has not meaningfully produced sintered NdFeB magnets at a commercial scale for decades. China dominates roughly 90% of global magnet manufacturing, with Japan and Europe occupying narrow, specialized lanes. Against that backdrop, eVAC’s Sumter facility represents a real restoration of a missing link: downstream magnet fabrication, not just mining or oxide separation.

Importantly, Noveon Magnetics has been producing American-made NdFeB magnets at a commercial scale in San Marco, Texas, since 2023.  Rare Earth Exchanges mistakenly omitted this important point. Noveon remains a mission-critical player for the U.S. rare earth magnet supply chain resilience.

The partnership with MP Materials is also credible. MP’s Mountain Pass operation is the largest rare earth mine in the Western Hemisphere and a significant NdPr source. While MP still relies on offshore separation for some stages, supplying NdPr feedstock into a U.S.-based magnet plant meaningfully shortens the value chain—and reduces exposure to Chinese processing choke points.

The initial production volume is modest by Chinese standards, but meaningful by American ones. A stated capacity of 2,000 metric tons annually by early 2026 would place eVAC among the largest magnet producers outside Asia. That is not trivial, and they are to be commended on this trajectory.

Where the Language Runs Ahead of the Metal

The rhetoric, however, runs hotter than the furnaces. Claims that eVAC is the “western world’s only producer of permanent magnets” blur reality.

“As the western world’s only producer of permanent magnets, we have demonstrated the ability to produce, and scale, at a rate unmatched by any other rare-earth manufacturer,” said Jeremy Martin, GM of VAC Magnetics U.S.+ “We look forward to continuing our growth in the United States with the support of both private and public investments and continuing to play a critical role in protecting America’s national and economic security.”

Japan and Europe still produce magnets, albeit selectively and often at higher cost.  What eVAC more accurately represents is the only scaled, vertically integrated NdFeB producer operating inside the continental United States. Which is impressive, and the company deserves recognition for the investments made in the execution unfolding.

Similarly, projections to scale output “six times” rest on future partnerships, capital, workforce expansion, and—critically—secure access to separated rare earth oxides and metals. None of those are guaranteed. Investors should read scale promises as intent, not capacity.

Why This Moment Matters

What makes this shipment notable is the timing. Defense platforms, EVs, drones, robotics, and grid infrastructure are all magnet-intensive—and demand curves are steepening. Washington’s industrial policy has focused heavily on mining and separation. Magnet manufacturing has been the stubborn gap. eVAC begins to close it.

Still, one facility does not equal resilience. True supply-chain security will require redundancy, competing producers, transparent pricing, and sustained demand signals from both defense and commercial buyers. This shipment proves capability. The market must now prove durability.

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