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 Quebec-based firm specializing in rare earth development. This agreement aims to create an offtake arrangement that guarantees Torngat Metals will supply VAC with a long-term, fully traceable, and responsibly sourced supply of separated rare earth oxides.
By partnering with VAC, Torngat Metals fortifies its role as a dependable participant in the permanent magnet supply chain. Once operational, the company’s Strange Lake project will be uniquely positioned to ensure a stable 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 building a diverse and resilient supply chain for critical raw materials. The company is enhancing its global capabilities and moving upstream into strip casting and metal production, solidifying each stage of production. Our ultimate goal is to secure reliable access to terbium (Tb) and dysprosium (Dy)—vital elements for high-performance magnets—through our strategic partnership with Torngat. This commitment significantly bolsters VAC’s strategic positioning while reinforcing the industrial foundation. Additionally, it enhances 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 forging the essential partnerships needed to establish a resilient and diversified supply chain for rare earth permanent magnets,” remarked Yves Leduc, CEO of Torngat Metals. “These vital minerals are crucial for advanced clean energy technologies, and we are eager to collaborate with VAC to lead the charge in this transition.”
“The alliance between Torngat Metals and VAC marks a significant step in Canada’s strategy to develop a secure and sustainable supply chain for rare earth elements. By promoting responsible development at Strange Lake and forming international partnerships with a global leader like VAC, Torngat is positioning Canada as a key player in the permanent magnet supply chain and a leader in energy and critical minerals. This agreement reflects our joint commitment with Germany to reduce dependence on single-source supply chains and enhance resilience in 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 top global producer 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 creates mission-critical solutions for various industries, including renewable energy, e-mobility, automotive, industrial automation, medical, and aerospace. VAC’s unique capability to develop and produce from base elements to final products allows us to deliver optimal form factors and performance, creating best-in-class efficient solutions with environmental considerations. 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 company dedicated to the development of the Strange Lake Rare Earth Project, aimed at responsibly supplying rare earth elements essential for advanced technology and low-carbon solutions. With initiatives underway in Quebec, Newfoundland, and Labrador, the firm seeks to become a globally recognized supplier of light rare earths and a leader in addressing the supply challenges of heavy rare earths like dysprosium and terbium. By building strong partnerships with Indigenous communities and local stakeholders and employing innovative methods to minimize environmental impacts, Torngat Metals is excited to play a pivotal role in the global transition to clean energy. Learn more at www.torngatmetals.com.
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