Ucore and VAC: Another Partnership to Strengthen Western Rare Earth Supply Chains

by | 4. Nov 2025 - 11:42 | Economy

The Canadian refining company aims to supply critical rare earth elements for magnet production in the United States and Europe.

In a further step to diversify rare earth supply chains beyond China, Canadian refining and technology company Ucore Rare Metals has announced a partnership with German magnet manufacturer Vacuumschmelze (VAC). Under the agreement, Ucore will supply VAC’s production facilities in Europe and the U.S. with separated rare earth oxides, including neodymium, praseodymium, terbium, dysprosium, samarium, and gadolinium. The latter four elements are of particular strategic importance, as China imposed strict export controls on them in April 2025, restrictions that have already led to temporary supply shortages.

VAC, with support from the U.S. Department of Defense, has built a new manufacturing facility in South Carolina, scheduled to begin operations later this fall. Ucore’s materials will initially be refined at its demonstration plant in Kingston, Canada, before being processed at a planned commercial refinery in Louisiana, expected to start operations in the second half of 2026 (PDF). This U.S. facility has also received funding from the Pentagon. Ucore utilizes its proprietary RapidSX technology for the separation and purification of rare earth elements. The Canadian government has recently announced additional funding for a new demonstration plant in Kingston dedicated to the production of samarium and gadolinium.

Both companies are already deeply involved in building rare earth supply chains independent of China. For example, they both collaborate with Cyclic Materials, a Canadian recycler of critical raw materials, and have expressed interest in sourcing rare earths from South America.

Photo: TRADIUM GmbH