Aclara Resources Chief Executive Officer Ramon Barua recently revealed a strategic collaboration with VACUUMSCHMELZE GmbH & Co (VAC) aimed at revolutionizing the supply chain for permanent magnets. The two companies have signed a Memorandum of Understanding (MOU) that lays the groundwork for a comprehensive 'mine-to-magnets' solution, which prioritizes Environmental, Social, and Governance (ESG) compliance.
This agreement is particularly significant given the rising demand for electric vehicles (EVs), wind turbines, and other clean technologies that rely heavily on rare earth permanent magnets. These magnets are essential components in these sectors and require both light and heavy rare earth minerals, which must adhere to stringent ESG standards.
Currently, the market for these essential minerals is heavily concentrated among a few suppliers based in Asia. This concentration poses both supply chain risks and opportunities for new entrants. Aclara and VAC aim to mitigate these risks by establishing a resilient and sustainable supply chain. Aclara’s unique position as one of the few potential suppliers of Dysprosium and Terbium—two critical heavy rare earth minerals—adds further importance to this alliance. These minerals are not easily sourced outside of Asia and are crucial for the production of permanent magnets.
Aclara is actively developing two ionic clay projects in Chile and Brazil to produce high-purity heavy rare earth carbonate. The company is also advancing its processing technology through its US-based subsidiary to convert this carbonate into magnetic alloys required by VAC for magnet production.
Barua expressed optimism about the strategic alliance, emphasizing its potential to create a robust and sustainable supply chain for rare earth permanent magnets. This collaboration supports Aclara’s commitment to sustainability and innovation, positioning the company to meet the growing global demand for environmentally responsible and high-performance permanent magnets.
The partnership between Aclara Resources and VAC is expected to significantly contribute to the advancement of clean technologies. It also aligns with broader global goals of reducing the carbon footprint of essential industries, reinforcing the importance of this collaboration in the context of global sustainability efforts.
