E-VAC secures $335mn for US permanent magnet plant

Battery technology manufacturer E-VAC Magnetics secured $335mn in funding to help construct its facility in South Carolina, where it plans on producing neodymium-iron-boron (NdFeB) permanent magnets starting in 2025.

The non-recourse financing — announced Thursday — was obtained by US-based private equity firm Ara Partners, which owns E-VAC's German-based parent company Vacuumschmelze (VAC).

The plant, which is scheduled to come on line in fall 2025, primarily will support several models of General Motors' (GM) line of electric vehicles (EV) over a 10-year period. GM and VAC entered into a binding supply agreement in September 2023, under which the latter agreed to build a manufacturing facility in North America.

E-VAC will source rare earths and other raw materials from local sources, it has said. The company has received over $200mn from the US Defense Department and US Energy Department for the project, as the US seeks to reduce its reliance on China for critical components needed for defense and electrification applications.

The company also signed a deal to recycle permanent magnets through Cyclic Materials, helping to create a circular supply chain for rare earth elements in North America.

By Alex Nicoll