VACUUMSCHMELZE joins UK’s flagship CirculaREEconomy project

VACUUMSCHMELZE joins UK’s flagship CirculaREEconomy project to secure sustainable magnet supply chain

Agreement aims to establish a sovereign, first-of-kind based rare earth permanent magnet (REPM) supply chain

Hanau, 18 July 2025 – VACUUMSCHMELZE GmbH & Co. KG (VAC), a global leader in the production of rare earth permanent magnets and advanced magnetic solutions, is proud to announce its strategic participation in the UK Government-backed “CirculaREEconomy” initiative. The £11 million program, funded by the UK Government through the Advanced Propulsion Centre (APC), aims to establish a sovereign, first-of-kind UK based rare earth permanent magnet (REPM) supply chain.

As part of the consortium, VAC will manufacture high-performance permanent magnets at its German facilities, based on the specifications of major automotive OEMs including Ford, Bentley, and Wrightbus.

"We are proud to contribute to this groundbreaking initiative, which marks a significant step towards a resilient and independent European magnet supply chain," said Dr. Erik Eschen, CEO of VACUUMSCHMELZE. "Our longstanding expertise in magnetic materials and product innovation will play a key role in ensuring that the magnets produced meet the highest technical and sustainability standards."

The CirculaREEconomy project pioneers a long-loop recycling model, recovering critical rare earth elements such as Neodymium, Dysprosium, and Terbium from end-of-life magnets for reuse in new electric motors. This closed-loop supply chain model is designed to reduce dependence on non-European sources and mitigate risks related to global market concentration.

Led by Ionic Technologies, the consortium includes leading partners from across the value chain: EMR (European Metal Recycling), Less Common Metals, the British Geological Survey (BGS), Bentley, Ford, and Wrightbus. VAC will work in close collaboration with these partners to deliver tailor-made magnetic solutions for next-generation e-mobility applications.

"The future of electrification depends on secure, high-performance, and sustainable material supply chains. Through this partnership, we are taking a significant step towards resource sovereignty and climate-conscious innovation in Europe," added Dr. Erik Eschen.

IonicRE Managing Director, Mr Tim Harrison stated: “As we saw with recent developments in the United States, changes are now occurring in the rare earth sector, and we believe our magnet recycling technology can be a big enabler in creating near term resilient rare earth capacity in the West.”

APC CEO, Mr Ian Constance said: “This funding award aligns perfectly with our commitment to transform the automotive sector through innovative zero-emission and Connected and Automated Mobility (CAM) vehicle technologies. By continuing to prioritise collaboration between industry, government, and academia, we can support research and development, vehicle innovation, and unlock capital investment in manufacturing plants and their wider supply chains.”

To learn more, please visit https://ionicre.com/ and www.vacuumschmelze.com

About Ionic Rare Earths Ltd

Ionic Rare Earths Limited (ASX: IXR or IonicRE) is an emerging miner, refiner and recycler of sustainable and traceable magnet and heavy rare earths needed to develop net-zero carbon technologies. Ionic Technologies International Limited (“Ionic Technologies”), a 100% owned UK subsidiary, has developed processes for the separation and recovery of rare earth elements (REE) from mining ore concentrates and recycled permanent magnets. Ionic Technologies is focusing on the commercialisation of the technology to achieve near complete extraction from end-of-life / spent magnets and waste (swarf) to high value, separated and traceable magnet rare earth products with grades exceeding 99.5% rare earth oxide (REO). The Makuutu Rare Earths Project in Uganda, 60% owned by IonicRE, is well-supported by existing tier-one infrastructure and is on track to become a long-life, low Capex, scalable and sustainable supplier of high-value magnet and heavy REO. IonicRE has also executed a transformational 50/50 joint venture refinery and magnet recycling facility in Brazil with Viridis Mining and Minerals Limited (ASX: VMM) to separate high value magnet and heavy rare earths from the Colossus Project’s full spectrum of REOs. This integrated strategy completes the circular economy of sustainable and traceable magnet and heavy rare earth products needed to supply applications critical to EVs, offshore wind turbines, communication, and key defence initiatives. For more information about IonicRE and its operations, please visit www.ionicre.com.

About Vacuumschmelze

VACUUMSCHMELZE (VAC) is a leading global producer of advanced magnetic solutions, rare earth permanent magnets, and inductive components. With extensive application know-how and 100 years of 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, 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. More information is available at www.vacuumschmelze.com. VAC is a portfolio company of Ara Partners, a global private equity firm that is decarbonizing the industrial economy.

About Ara Partners

Ara Partners is a global private equity and infrastructure investment firm focused on industrial decarbonization. Founded in 2017, Ara Partners seeks to build and scale companies with significant decarbonization impact across the industrial and manufacturing, chemicals and materials, energy efficiency and green fuels, and food and agriculture sectors. The company operates from offices in Houston, Boston, Washington, D.C., and Dublin. Ara Partners closed its third private equity fund in December 2023 with over $2.8 billion in capital commitments. As of March 31, 2025, Ara Partners had approximately $6.0 billion of assets under management. For more information about Ara Partners, please visit www.arapartners.com.

Media Contacts

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