VAC and Torngat Metals Establish Strategic Alliance to Strengthen Rare Earth Supply Chain
HANAU, GERMANY – Newsaktuell – 26 August 2025 – VACUUMSCHMELZE (VAC), a leading global producer of rare earth permanent magnets, has signed a non-binding Memorandum of Understanding (MOU) with Torngat Metals, a company from Quebec specializing in rare earth development. This agreement seeks to establish an offtake arrangement, ensuring that Torngat Metals provides VAC with a long-term supply of fully traceable and responsibly sourced separated rare earth oxides.
By partnering with VAC, Torngat Metals positions itself as a reliable player in the permanent magnet supply chain. With the upcoming operational phase of its Strange Lake project, the company will be strategically situated to deliver a consistent supply of both light and heavy rare earth oxides essential for permanent magnets.
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“As the sole Western manufacturer of sintered rare earth permanent magnets, VAC is at the forefront of establishing a diverse and strong supply chain for key raw materials. The company is enhancing its global capabilities and advancing into strip casting and metal production, thereby reinforcing each stage of production. Our ultimate goal is to secure reliable access to terbium (Tb) and dysprosium (Dy)—critical components for high-performance magnets—through our strategic partnership with Torngat. This collaboration not only strengthens VAC’s strategic position but also enhances the industrial foundation and contributes to the national security of our allied nations by ensuring ongoing access to technology crucial for our collective defense,” stated Erik Eschen, CEO of VAC.
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“This MOU highlights our progress—not only in project development but also in forming the necessary collaborations to create a resilient and diversified supply chain for rare earth permanent magnets,” remarked Yves Leduc, CEO of Torngat Metals. “These crucial minerals are essential for advanced clean energy technologies, and we are thrilled to partner with VAC to lead this transition.”
“The collaboration between Torngat Metals and VAC is a significant advancement in Canada’s strategy to cultivate a secure and sustainable supply chain for rare earth elements. By supporting responsible development at Strange Lake and forming international partnerships with a global leader like VAC, Torngat is ensuring Canada’s position as a central player in the permanent magnet supply chain and a force in energy and critical minerals. This agreement reflects our shared commitment with Germany to reduce reliance on single-source supply chains and enhance the resilience of critical mineral access on a global scale,” stated Tim Hodgson, Canada’s Minister of Energy and Natural Resources.
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The issuer is solely responsible for the content of this announcement.
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About Vacuumschmelze
VACUUMSCHMELZE (VAC) is a leading global provider of advanced magnetic solutions, rare earth permanent magnets, and inductive components. With extensive expertise and over a century of experience in material science and product development, VAC designs and manufactures mission-critical solutions for diverse sectors, including renewable energy, e-mobility, automotive, industrial automation, medical, and aerospace. VAC’s unique capability to evolve from base elements to final products enables us to deliver optimal form factors and performance, crafting superior, efficient solutions while considering environmental impacts. For more information, visit 
www.vacuumschmelze.com. VAC is a portfolio company of Ara Partners, a global private equity firm focused on decarbonizing the industrial economy.
About Torngat Metals Ltd.
Torngat Metals is a Canadian private enterprise committed to developing the Strange Lake Rare Earth Project, aimed at responsibly supplying rare earth elements vital for advanced technology and low-carbon solutions. With development efforts in Quebec, Newfoundland, and Labrador, the firm seeks to become a globally recognized supplier of light rare earths and a leader in tackling the heavy rare earth supply challenges for dysprosium and terbium. By building strong partnerships with Indigenous communities and local stakeholders, and employing innovative approaches to minimize environmental impacts, Torngat Metals is poised to play a significant role in the global shift towards clean energy. Learn more at www.torngatmetals.com.
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