Department of Defense invests in permanent magnet manufacturer.
The U.S. Office of the Assistant Secretary of Defense for Industrial Base Policy plans to expand the supply chain of rare earth metal-based magnets in its own country. It reached an agreement with E-VAC Magnetics LLC on Tuesday to do so.
The company, which is part of rare earth permanent magnet manufacturer VAC Group, will receive support through its Manufacturing Capability Expansion and Investment Prioritization (MCEIP) program, which aims to create resilient and secure supply chains for the defense industry.
E-VAC has committed $94.1 million to acquire and install manufacturing facilities, commission technical infrastructure and develop production lines for the magnets the U. S. needs. By 2025, E-VAC is thus expected to start high volume production of rare earth-based permanent magnets. The investment aims to help establish an integrated, domestic rare earth supply chain from mine to magnet, according to Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy.
The magnets are used in military applications including unmanned aerial vehicles and other defense systems.
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