• Pensana, VAC sign MOU for U.S. rare earth supply chain

• Longonjo mine in Angola to supply magnet materials under agreement

• U.S. seeks to cut reliance on China for critical minerals
  

UK-based Pensana announced on Wednesday, Oct. 22, a Memorandum of Understanding (MOU) with German permanent magnet producer Vacuumschmelze GmbH & Co. KG (VAC). The agreement aims to establish a "mine to magnet" supply chain in the United States, incorporating production from Pensana's future Longonjo rare earth mine in Angola.

The initiative reinforces U.S. interest in the developing Angolan asset, coming months after a similar supply agreement was announced with ReElement.

Under the MoU, VAC will purchase mixed rare earth carbonate (MREC) from the Longonjo mine for an initial, renewable term of five years at a price yet to be determined. VAC intends to use the raw material to support magnet production at its eVAC Magnetics facility in South Carolina.

While the specific volumes to be delivered to VAC were not detailed, the previously announced MOU with ReElement covers the annual delivery of 20,000 tonnes of MREC over five years. Although neither agreement is yet legally binding, both share the objective of meeting U.S. domestic rare earth demand as Washington seeks to reduce its reliance on China, the world's leading supplier of the critical metals.

"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," said Troy Thacker, Executive Chairman of eVAC. "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."

The Longonjo project, scheduled to start operations in early 2027, is expected to have an initial annual production capacity of 20,000 tonnes of MREC. A planned expansion phase would increase production to 40,000 tonnes per year. Pensana has already secured the $268 million needed for project development through agreements with Angola's sovereign wealth fund (FSDEA), AFC, and South African bank Absa. In addition to the U.S. partnerships, Pensana has also signed MOUs with Japan's Toyota Tsusho and Hanwa.

Aurel Sèdjro Houenou