Highlights

• Vacuumschmelze introduces VACODYM 902 TP, an NdFeB alloy.
• Claims to reduce dependence on Chinese-controlled heavy rare earths.
• New magnet technology signals potential strategic importance for European industrial policy and supply chain de-risking.
• Performance claims remain unproven without comprehensive testing and long-term thermal stability data.

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Vacuumschmelze (VAC), (opens in a new tab) the German magnet maker, has announced (opens in a new tab) VACODYM 902 TP, an NdFeB alloy marketed as “heavy rare earth-free.” The claim is striking, since high-performance magnets often rely on terbium (Tb) or dysprosium (Dy) to maintain stability at high temperatures. VAC’s positioning taps into a long-running Western industry ambition: reduce reliance on Chinese-controlled heavy rare earths without sacrificing performance.

What Holds True

It’s accurate that China dominates global production of Tb and Dy. While Lynas Rare Earths has launched small-scale Tb and Dy oxide output in Malaysia, and Energy Fuels in the U.S. has pilot-produced Dy, China still maintains industrial-scale capacity. The article also correctly notes that MP Materials has heavy rare earth content in its Mountain Pass orebody, though commercial separation and scale remain aspirational.

Reading Between the Lines

Where speculation creeps in is performance. VAC frames the alloy as a drop-in solution to supply chain risk—but without hard data on coercivity, energy product, or long-term thermal stability, claims of equivalency to Dy/Tb-containing magnets remain unproven. History shows that “heavy rare earth-free” magnets often work in limited operating windows, but can struggle in EV drive motors or defense applications where temperatures run hot.

Why This Matters

If VACODYM 902 TP performs as advertised, it could reduce Europe’s dependence on China’s heavy rare earth choke points. That would be strategically significant for EU industrial policy, which prioritizes “de-risking” supply chains. But for investors and OEMs, the news is best read as a signal rather than a solution. Until customer adoption and test data are shared, VAC’s alloy remains part of a larger story: the global race to engineer around scarce heavy rare earths before new non-Chinese supply arrives mid-to-late decade.

Final Take

The announcement is real and strategically relevant, but the coverage leans promotional. The hard truth is that the world still lacks scalable heavy rare earth capacity outside China, and alloy innovation, while promising, rarely eliminates demand completely.

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