Highlights

• Pensana Plc signed an MOU with Vacuumschmelze (VAC) to create a mine-to-magnet supply chain.
• The supply chain connects Angola's Longonjo mine to VAC's South Carolina plant.
• The goal is to scale production to 12,000 tonnes of magnets annually by 2029.
• The Longonjo project is financed and under construction.
• Starting late 2026-early 2027, the project will produce 20,000 tonnes of Mixed Rare Earth Carbonate annually.
• This production represents 5% of global demand with in-country beneficiation.
• The partnership is an Anglo-Angolan-American effort.
• It marks the first credible African feedstock entering Western magnet manufacturing at scale.
• This could potentially counter China's dominance before the 2027 U.S. defense import deadline.

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In a move that could redraw the contours of the Western rare earth supply chain, Pensana Plc (opens in a new tab) (PNSPF (opens in a new tab)) (OTCMKTS) has signed a Memorandum of Understanding (MOU) with Vacuumschmelze GmbH ( (opens in a new tab)VAC) to establish a mine-to-magnet pipeline from Angola to the United States.

See the Rare Earth Exchanges (REEx) magnet manufacturer rankings to understand VAC’s position. They stand high in Division 2---a promising position.

This partnership connects Pensana’s Longonjo project in Angola, one of the world’s largest developing rare earth mines, with VAC’s newly commissioned eVAC Magnetics plant in Sumter, South Carolina (opens in a new tab). The facility—backed by the U.S. International Development Finance Corporation (opens in a new tab) and publicly endorsed by the Trump Administration—will scale from 2,000 to 12,000 tonnes of rare earth magnets annually by 2029, creating the backbone for America’s domestic magnet manufacturing ecosystem.  This deal is part of the important American-centric pivot REEx discussed based on a recent interview with Pensana.

Paul Atherly: On the Verge of a First—Angolan-American Rare Earth Magnet Triangle

A Pathway from Africa to America

In our earlier REEx interview with Chairman Paul Atherley, (opens in a new tab) he described Pensana’s ambition to “create an ex-China model for responsible rare earth development” rooted in Africa’s emerging industrial base. That vision now takes tangible form: the Longonjo mine, already financed and under construction, aims to begin production by late 2026 or early 2027, with output of 20,000 tonnes of clean Mixed Rare Earth Carbonate (MREC) per year—enough to supply roughly 5% of global demand.

This is not the old “dig-and-ship” African model. Pensana is embedding beneficiation and refining capacity in-country, keeping value and jobs in Angola. It’s a playbook that aligns neatly with both Western decarbonization goals and African economic empowerment.

REEx has reviewed the effort in Angola (including the Lobito Corridor) and suggests the sophistication and commitment of Pensana and continental (African) financial players and local Angolan/African companies remain impressive. Atherley and team are working on a new, win-win model that, if successful, will change the course of rare earth and, by extension, critical mineral global supply chains.

Market Momentum and Investment Lens

From a fundamental perspective, Pensana is executing on a financed, construction-phase project with high leverage to NdPr oxide pricing. Yet from a technical market standpoint, the stock remains volatile—reflecting broader investor caution toward long-horizon critical mineral projects. The VAC MOU adds credibility and potential offtake visibility, which could serve as a stabilizing catalyst heading into 2026. REEx suggests that retail investors in North America start studying this asset.

The Strategic Question

Can this Anglo-Angolan-American (and German magnet enterprise) triangle scale fast enough to counter China’s dominance before the 2027 U.S. defense import deadline hits? If Pensana and VAC deliver, it would mark the first credible African feedstock entering a Western magnet plant at scale—a geopolitical and industrial milestone. One to be celebrated and a model for others to emulate.

Source: Pensana Plc Regulatory Announcement, Oct. 22, 2025; Rare Earth Exchanges interview with Paul Atherley, “Pensana Plc: Charting a New Ex-China Rare Earth Supply Route and Model for Africa and America.”

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