Highlights

• German magnet manufacturer VAC partners with Canadian Torngat Metals to secure traceable rare earth oxide supply.
• Strategic MOU aims to reduce dependency on Chinese rare earth markets and develop a Western-controlled supply chain.
• Partnership focuses on heavy rare earth elements like Terbium and Dysprosium for high-performance magnets.

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VACUUMSCHMELZE (VAC), a major Western producer of sintered NdFeB magnets and in the top ex-China rankings within the Rare Earth Exchanges (REEx) Magnet Manufacturing rankings inked a non-binding MOU with Quebec-based Torngat Metals (opens in a new tab). The aim of the initiative, negotiate an offtake for “fully traceable, responsibly produced” separated rare-earth oxides—with an emphasis on heavy REEs Tb/Dy for high-performance magnets.

Note the separation site/scale, tonnage bands, pricing formula, take-or-pay are undisclosed in the MOU.

The MOU was executed in Berlin by Erik Eschen,VAC CEO (opens in a new tab), and Yves Leduc Torngat CEO (opens in a new tab), witnessed by German and Canadian energy/economic ministers, Katherina Reiche (opens in a new tab), Minister for Economic Affairs and Energy (Germany) and Timothy Hodgson (opens in a new tab), Minister of Energy and Natural Resources (Canada). The MOU is pitched as a Canada–Germany supply-chain partnership aimed at reducing reliance on China.

Bedrock, not Buzz

It’s meaningful that a Western sintered-magnet maker is aligning directly with a heavy-REE project developer. If Torngat advances Strange Lake to production and third-party separation capacity is secured, VAC would gain a clearer path to Tb/Dy—the scarcest magnet ingredients. The release’s commitment to traceability and “responsible” supply also tracks growing OEM and defense procurement requirements.

Marketing Glitter in Need of Grit?

This is an MOU, not a binding offtake—no volumes, prices, start date, or exclusivity disclosed. “Independent from China” is aspirational until a complete chain (mining → separation → metal → alloy → magnet) is financed and commissioned outside Chinese tolling. The claim that VAC is the sole Western producer of sintered rare-earth magnets is presented as a company assertion; investors should treat it as such until independently verified. Ministerial attendance signals political interest, not funding.

Questions that Price the Story

Where will separation of Strange Lake concentrates occur, at what scale, and on whose balance sheet? What tonnage bands, product specs (oxide/carbonate), and pricing formula will a definitive offtake use—and is there take-or-pay? What is Torngat’s permitting/DFS status, capex, and timeline to first oxides, and how is Th/U handling addressed for ESG/radiological compliance? Does VAC’s plan cover metal/alloy capacity and the strip-casting/press-sinter steps needed to turn oxides into qualified magnets at industrial volumes? Finally, how does this deal mesh with EU and Canadian industrial-policy support (grants, guarantees, offtake credits) needed to close project financing?

Source & authors: “VAC and Torngat Metals Announce Strategic Partnership to Strengthen Rare Earth Supply Chain,” VAC press release, Aug 26, 2025; statements by Erik Eschen and Yves Leduc.

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