Aclara and Germany's VAC sign rare earths MOU

Canada's Aclara and German company Vacuumschmelze (VAC) signed an MOU to create a supply chain for permanent magnets, involving the former's planned US$130 million Penco ionic clay rare earth project in southern Chile.

The purpose is to supply the electric vehicle, wind turbine and other clean technology markets.

“Permanent magnets require both light and heavy rare earth minerals, the procurement and processing of which is currently limited and dominated by Asian suppliers,” Aclara CEO Ramón Barúa said in a statement.

Penco, expected to provide the raw material for the magnetic solution, is currently in the environmental processing phase. It is planned to produce 1,700t/y of dry rare earth concentrate from 2026 for nine years.

Aclara is operating a plant in Chile's Biobío region, which will also allow it to become one of the few producers of dysprosium and terbium, key minerals for permanent magnet manufacturing.

Subsidiary Aclara Technologies is developing separation technologies to convert the concentrate into the magnetic alloys required by VAC, which will use the input to produce permanent magnets at its plant in Hanau, a city in the German state of Hesse.

Additionally, Aclara formed a joint company with Chilean conglomerate CAP to promote Penco, which seeks to develop the added value of rare earths with a strong focus on sustainability, Barúa told BNamericas in an interview.