[Overseas] The United States Will Expand Domestic Production Of Rare Earth Magnets To Strengthen The Supply Chain

The Office of the Assistant Secretary in the U.S. Department of Defense responsible for industrial infrastructure policy formulation issued an award to E-VAC Magnetic Company through the MCEIP Office, targeting to establish domestic rare earth permanent magnet manufacturing capabilities. E-VAC is a division of VAC Group, a manufacturer of rare earth permanent magnets.

Under the agreement, the Department will provide $94.1 million to E-VAC to procure and install manufacturing equipment, operational technical infrastructure, and engineering production lines. E-VAC is expected to start mass production of rare earth permanent magnets in 2025.

Dr. Laura Taylor-Kahler, Assistant Secretary of the U.S. Department of Defense, said that departments are building on previous DOD awards and adding to or complementing other agencies’ investments in rare earth minerals to help create a comprehensive domestic rare earth supply chain from mine to magnet.