e-VAC awarded $112M tax credit boost for US permanent magnets facility

April 23, 2024

e-VAC Magnetics has been awarded a $111.9 million Qualifying Advanced Energy Project Tax Credit (Courtesy e-VAC Magnetics)
e-VAC Magnetics has been awarded a $111.9 million Qualifying Advanced Energy Project Tax Credit (Courtesy e-VAC Magnetics)

e-VAC Magnetics, which is part of the VAC Group headquartered in Hanau, Germany, has been awarded a $111.9 million Qualifying Advanced Energy Project Tax Credit to advance the construction of its first US manufacturing facility in Sumter, South Carolina. The facility was one of more than 100 projects to receive an award under the Section 48c programme, which is designed to help accelerate domestic clean energy manufacturing and reduce greenhouse gas emissions at industrial facilities.

e-VAC, which is part of Vacuumschmelze (’VAC Group’ or ‘VAC’), produces rare earth neodymium-iron-boron (NdFeB) magnets, which are critical to automotive, defence, industrial and renewable energy applications. The company broke ground on the facility in March, and expects to complete the facility in late autumn 2025. The project is expected to create 300 new jobs in Sumter.

THE WORLD OF POWDER METALLURGY TO YOUR INBOX
Subscribe to our weekly newsletter
Sign up

“e-VAC is proud to invest in America’s 21st century supply chain and to advance clean energy manufacturing efforts,” said Dr Erik Eschen, VAC Group Chief Executive Officer. “This award demonstrates the importance of high-quality, high-performance magnetic materials, which are key enablers to electrification and energy efficiency across a range of industries. Our facility will help to establish a resilient, US-based supply chain for decades to come.”

In January 2023, e-VAC announced a binding long-term supply agreement with GM to manufacture permanent magnets, using locally sourced raw materials, for the electric motors used in a broad portfolio of EVs in North America. In September 2023, the US Department of Defence entered into an agreement with e-VAC as part of its ‘Mine-to-Magnet’ supply chain initiative, ensuring US companies are able to source and produce the rare earth permanent magnets that are essential components in the F-35, Unmanned Aerial Vehicles, and numerous other defence systems.

In October 2023, VAC was acquired by Ara Partners, a private equity and infrastructure firm that specialises in industrial decarbonisation investments. Ara’s investment has provided VAC with the capital to expand and build a rare earths value chain.

“The Inflation Reduction Act is helping companies invest in America and build critical domestic supply chains,” stated Tuan Tran, partner at Ara Partners. “Suppliers like e-VAC will play an important role in decarbonising the industrial world, and we are committed to helping these companies expand their footprints here in the US while substantially reducing emissions.”

www.vacuumschmelze.com

www.arapartners.com

Download PM Review magazine

In the latest issue of PM Review…

Download PDF

Extensive Powder Metallurgy industry news coverage, and the following exclusive deep-dive articles and reports:

  • Phoenix Sintered Metals: A story of transformation, growth and community from America’s PM heartland
  • World PM2024 Yokohama: The stage is set for the PM industry to find a path to sustainable growth
  • The state of Europe’s hard magnets industry and the challenge of optimising the mass production of Nd2Fe14B permanent magnets

The latest news from the world of metal powders, delivered to your inbox

Don't miss any new issue of PM Review, and get the latest industry news. Sign up to our weekly newsletter.

Sign up

Join our community

Discover our magazine archive…

The free-to-access PM Review magazine archive offers unparalleled insight into the world of Powder Metallurgy from a commercial and technological perspective through:

  • Reports on visits to leading PM part manufacturers, metal powder manufacturers and industry suppliers
  • Articles on technology and application trends
  • Information on materials developments
  • Reviews of key technical presentations from the international conference circuit
  • International industry news

All past issues are available to download as free PDFs or view in your browser.

 

Browse the archive

 

Looking for PM production equipment, metal powders, R&D support and more?

Discover suppliers of these and more in our
advertisers’ index and buyer’s guide, available in the back of PM Review magazine.

  • Powders & materials
  • Powder process, classification & analysis
  • PM products
  • Atomisers & powder production technology
  • Compaction presses, tooling & ancillaries
  • Sintering equipment & ancillaries
  • Post-processing
  • Consulting & toll sintering
View online
Share via
Copy link