Highlights

• e-VAC Magnetics in Sumter, South Carolina shipped the first U.S.-manufactured rare earth permanent magnets for commercial use in December 2025, employing 300+ workers with DoD support and aiming for 1,500-1,600 tons annual production.
• Global demand for rare earth permanent magnets is projected to surge from 180,000-200,000 metric tons today to 300,000-350,000 metric tons by 2030, driven by EVs, wind power, robotics, and defense applications.
• The U.S. currently imports 40,000 metric tons annually with 90% from China, while domestic players like e-VAC Magnetics and Noveon Magnetics work to rebuild a resilient Western supply chain through DFARS-compliant production and recycled feedstock strategies.

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In Sumter, South Carolina, less than two years after breaking ground, e-VAC Magnetics (opens in a new tab) in late December shipped its first U.S.-manufactured rare earth permanent magnets for commercial use, marking a significant step toward rebuilding domestic capacity in one of the world’s most strategically vital supply chains.

As reported by News 19 WLTX, (opens in a new tab) the Sumter facility—once a soybean field—now employs more than 300 workers and represents the German-based company’s first manufacturing site in the United States.

 e-VAC Magnetics is claims that they are shipping the first domestically produced, rare-earth (NdFeB) permanent magnets for commercial use in the U.S. in the 21st century, with the first shipment occurring on December 12, 2025, from their new Sumter, South Carolina facility. This marks a major, widely recognized, and DOD-supported initiative to restore the U.S. supply chain.  As Rare Earth Exchanges™ notes below, other firms in America are producing rare earth-related magnets, including Noveon Magnetics (opens in a new tab).

Source: YouTube

A Strategic Industry Reborn in South Carolina

Rare earth permanent magnets, particularly neodymium-iron-boron (NdFeB) magnets, power electric vehicles, wind turbines, solar systems, defense technologies, robotics, smartphones, and advanced electronics. They are foundational to electrification and national security.

Mostly Produced in China

For decades, the United States allowed this industry to migrate offshore. Today, more than 90% of global rare earth magnet manufacturing occurs in China, and the U.S. imports the vast majority of finished magnets used in its economy.

In 2024, the United States imported an estimated 40,000 metric tons of rare-earth permanent magnets, including approximately 10,000 metric tons of individual (raw) magnets for domestic manufacturing and another 30,000 metric tons embedded in finished goods such as electric vehicles, wind turbines, and consumer electronics. More than 90% of these imports originated from China, underscoring continued supply chain dependence. The market remains highly volatile, with monthly import volumes fluctuating sharply—illustrated by spikes exceeding 350 metric tons in a single month in 2025—highlighting both rising demand and structural supply instability.

e-VAC’s first shipment is therefore more than symbolic. It, along with the work of Noveon Magnetics and a few others, demonstrates that domestic magnet manufacturing is technically andcommercially viable again.

Demand Is Accelerating — Rapidly

The urgency is real. Global demand for rare earth permanent magnets is forecast to expand sharply:

• Global magnet demand today: ~180,000–200,000 metric tons annually
• By 2030: projected to exceed 300,000–350,000 metric tons per year
• EVs and hybrid vehicles alone are expected to consume 100,000+ metric tons annually by 2030
• Wind power, robotics, AI data centers, aerospace, and defense will add further structural demand

An average electric vehicle uses 1–2 kilograms of NdFeB magnets. As EV adoption accelerates globally, magnet demand scales directly.

A Beginning — Not an Endpoint

e-VAC’s milestone is a breakthrough. But it is not yet scaled.

Rebuilding a resilient U.S. magnet ecosystem requires:

• Domestic rare earth oxide separation capacity
• Alloying and metallization capability
• Powder production and sintering scale
• Secure heavy rare earth supply (dysprosium, terbium)
• Long-term industrial policy support

The Sumter facility proves the model works. The challenge now is expansion.

The Road Ahead

The United States remains heavily dependent on Chinese supply chains for rare earth magnets—materials critical to EVs, wind turbines, defense systems, and advanced manufacturing.

e-VAC Magnetics has demonstrated that reshoring is possible.

The next phase will determine whether America merely re-enters the market—or reclaims leadership.

The first shipment is a milestone. The industrial race hasonly begun.

The e-Vac Magnetics facility, supported by the U.S. Department of Defense, aims to produce 1,500–1,600 tons annually.

Important Player—Noveon Magnetics

Noveon Magnetics has been noted for having already reshored full-scale production of sintered rare-earth magnets to the U.S.  

Noveon Magnetics (opens in a new tab) is a U.S.-based manufacturer of high-performance sintered neodymium-iron-boron (NdFeB) magnets operating a 100,000+ square-foot facility in San Marcos, Texas. The company differentiates itself through a proprietary, non-Chinese feedstock strategy designed to reduce dependence on the China-dominated rare earth supply chain.

At the core of its model are its EcoFlux™ and M2M (Magnet-to-Magnet) technologies, which enable the production of magnets from 100% recycled, end-of-life, alternative, or virgin materials. This approach allows Noveon to bypass newly mined Chinese feedstock and instead utilize domestic or allied sources, strengthening supply chain resilience while reducing environmental impact.

Noveon’s magnets are DFARS-compliant (opens in a new tab) (Defense Federal Acquisition Regulation Supplement), meaning they meet U.S. defense sourcing requirements and are not melted or produced in China—making them suitable for defense, aerospace, and national security applications.

The Texas facility is designed for commercial-scale output, with ongoing expansion plans aimed at increasing annual tonnage. Noveon serves automotive, defense, and advanced technology markets and is one of the few companies producing high-performance sintered NdFeB magnets outside of China, positioning itself as a cornerstone of a secure Western magnet supply chain. Noveon is among the top ex-China players in the USA.

Other Key Players

Other players in the U.S. space include Permag, (opens in a new tab) Arnold Magnetic Technologies (opens in a new tab), and a handful of smaller firms working on finding alternatives to Chinese feedstock. Neo Performance Materials (opens in a new tab), based in Canada, makes magnets in both China and Europe. Entrants in development include JS Link America, a Korean firm building a plant in Georgia.

Major players also exist in Japan and Korea, such as Proterial (opens in a new tab).

e-VAC Profile

e-VAC Magnetics LLC is a U.S.-based manufacturer of rare-earth permanent magnets, established to restore commercial magnet production in the United States after decades of reliance on imports. The company built its first U.S. facility in Sumter County, South Carolina, breaking ground in 2023 and beginning commercial shipments by early 2026 from aplant that now employs 300 workers and will scale toward thousands oftons of annual production capacity. Its operations focus on neodymium-iron-boron (NdFeB) magnets, which are essential for electric vehicles, renewable energy systems, defense systems, and high-performance industrial applications. e-VAC has secured major support through U.S. Department of Defense funding, a $111.9 million advanced energy tax credit, and long-term supply agreements with OEMs, such as General Motors, for domestically sourced magnets.

Parent Company — Vacuumschmelze (VAC Group)

e-VAC Magnetics is part of the VAC Group (Vacuumschmelze), a German magnetic materials and solutions producer with over a century of experience in advanced magnetic technology. VAC develops and manufactures a broad range of magnetic materials, components, and permanent magnets (including NdFeB and samarium-cobalt) for automotive, industrial, aerospace, renewable energy, and defense markets. The VAC Group’s technical expertise and global presence underpin e-VAC’s expansion into the Western Hemisphere, and the companies are collaborating with partners such as Ucore Rare Metals to secure high-purity rare-earth oxides and reduce reliance on Chinese supply chains. VAC is backed by private equity ownership through Ara Partners, which has facilitated significant financing for the U.S. magnet facility.

In short, e-VAC Magnetics is the U.S. manufacturing arm of a century-old German magnet technology leader, accelerating domestic production of strategic magnet materials while building toward a more resilient, Western supply chain.