HANAU, GERMANY – Newsaktuell – 26 August 2025 –
VACUUMSCHMELZE (VAC), a global leader in the production of rare earth permanent magnets and Torngat Metals, a Quebec-based rare earths development company, have signed a non-binding Memorandum of Understanding (MOU) to pursue an offtake agreement for Torngat Metals to supply VAC with long-term security of fully traceable and responsibly produced separated rare earth oxides.
The MOU was signed in Berlin today by Yves Leduc, CEO of Torngat Metals, and Erik Eschen, CEO of VAC, in the presence of Germany’s Minister for Economic Affairs and Energy Katherina Reiche and Canada’s Minister of Energy and Natural Resources Tim Hodgson. This strategic move underscores Canada and Germany’s bilateral collaboration in the area of critical minerals. Both countries are seeking to address the global heavy rare earths crisis while establishing a permanent magnet supply chain independent from China.
By joining forces with VAC, Torngat Metals is reinforcing its position as a reliable partner within the permanent magnet supply chain. Once in operation, the company’s Strange Lake project will be uniquely positioned to ensure long-term supply security for the full suite of light and heavy rare earth oxides needed for permanent magnets.
“As the sole Western producer of sintered rare earth permanent magnets, VAC is at the forefront of securing a diverse and resilient supply chain for critical raw materials. The company is expanding our global capacities and moving upstream into strip casting and metal making, strengthening every stage of production. Ensuring reliable access to terbium (Tb) and dysprosium (Dy) – elements essential to high-performance magnets is the final step, and one that we are achieving through our strategic partnership with Torngat. This commitment is essential to reinforce VAC’s strategic position and bolster the industrial base. In doing so also, we can enhance the national security of our allied nations by ensuring continuous availability of technology critical to our collective defense.” said Erik Eschen, CEO of VAC.
“This MOU highlights our progress – not only in advancing project development, but also in forging the partnerships needed to build a resilient and diversified supply chain for rare earth permanent magnets,” said Yves Leduc, CEO of Torngat Metals. “These critical minerals are central to advanced clean energy technologies, and we look forward to working with VAC to play a leading role in driving the transition.”
“The partnership between Torngat Metals and VAC marks a significant step forward in Canada’s efforts to build a secure and sustainable supply chain for rare earth elements. By advancing responsible development at Strange Lake and forging international collaboration with a global leader like VAC, Torngat is helping to position Canada as a key contributor to the permanent magnet supply chain, and an energy and critical mineral superpower. This agreement reflects our shared commitment with Germany to reduce reliance on single-source supply chains and strengthen the resilience of critical mineral access worldwide,” said Tim Hodgson, Canada’s Minister of Energy and Natural Resources.
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