Partnership with Vacuumschmelze GmbH to establish mine-to-magnet supply chain in the US

Partnership with Vacuumschmelze GmbH to establish

mine-to-magnet supply chain in the US

Pensana Plc is pleased to announce the signing of a Memorandum of Understanding (“MOU”) with Vacuumschmelze GmbH & Co. KG (“VAC”), a leading manufacturer of advanced magnetic solutions, rare-earth permanent magnets, and inductive components.

Through its recently commissioned eVAC Magnetics facility in Sumter, South Carolina (“eVAC”), VAC is playing a key role in bolstering domestic rare-earth magnet production in the United States, an effort crucial to America’s national and economic security interests.

Key terms of the MOU include:

A proposed offtake of products from Longonjo including the clean Mixed Rare Earth Carbonate (“MREC”) to meet the deadline of the defense restrictions on rare-earth imports from China in 2027. The proposed offtake would be for an initial five-year period, subject to extension and with pricing to be agreed.

The agreement will support the production by eVAC of 2,000 tonnes per annum of rare earth magnets initially rising to 12,000 tonnes per annum by 2029.

Strategic co-operation to strengthen and secure the global rare earth value chain and explore additional joint opportunities.

Troy Thacker, Executive Chairman of eVAC commented: “A new partnership between VAC and Pensana is a leap forward in the fight to strengthen and diversify the Western supply chain for rare-earth minerals, and we are grateful for the Trump Administration’s and the U.S. International Development Finance Corporation’s unwavering support and partnership in this effort.

This agreement not only reflects VAC's commitment to building a complete mine-to-magnet supply chain that will meet the growing demands for rare-earth materials but also illustrates how we will do so in a way that bolsters America's national and economic security."

Paul Atherley, Chairman, Pensana commented: “We are delighted to be able to work with the eVAC team to establish a major mine to magnet supply chain in the US. The Longonjo mine is one of the world’s largest undeveloped rare earth mines and Vacuumschmelze is a global leader in rare earth permanent magnets.

The Longonjo mine is financed, in construction and scheduled for the commencement of production in early 2027 with a 20 year mine life. We are looking at accelerating this production timeline to late 2026 and have committed to a major exploration programme to expand the resource inventory to meet the future demand for electric vehicle, automation and humanoid robots.”

About Vacuumschmelze

Vacuumschmelze is a leading global producer of advanced magnetic solutions, rare earth permanent magnets, and inductive components that are crucial for the decarbonization of our planet.

With more than 100 years of application know how and experience in material science and product development, VAC designs and manufactures mission critical solutions for a wide variety of industries, including renewable energy, e-mobility, automotive, industrial automation, medical and aerospace.

VAC's unique ability to develop and manufacture from base elements through final products enables us to provide customers optimal form factors and performance, generating best in class efficient solutions in an environmentally conscious manner.

eVAC is developing a state-of-the-art rare earth neodymium-iron-boron (NdFeB) permanent magnet production facility in Sumter, South Carolina. The eVAC facility and VAC’s decades of experience in rare earth magnet technology and process intellectual property is a critical piece to ensuring North American domestic supply continuity.