World

Energy Fuels' $1.9B Acquisition of Vacuumschmelze: Germany Launches Foreign Investment Review

Herz — World Desk · 25 July 2026 at 13:22 · 30s summary · 3 min read

The essentials

US-based Energy Fuels announced in late June 2026 its intention to acquire Vacuumschmelze (VAC), a German rare earth magnet manufacturer headquartered in Hanau (Hesse), for $1.9 billion, according to Handelsblatt. The German government has opened a formal foreign investment review procedure. According to sources cited by Bloomberg, Berlin is expected to impose conditions—particularly maintaining the Frankfurt region's production site—rather than block the deal outright. VAC employs 3,600 people and supplies over 1,000 customers worldwide, including General Motors.

Energy Fuels has offered $1.9 billion to acquire German rare earth magnet manufacturer VAC based in Hanau
Germany has launched a formal foreign investment review of the transaction
An outright ban is seen as unlikely; conditions are expected to be imposed instead
VAC is one of the few rare earth magnet producers outside China
Other European countries are reviewing the deal, according to VAC CEO Erik Eschen

Illustration image — Zchill, CC BY-SA 3.0, Wikimedia Commons

What we know

US-based Energy Fuels announced in late June 2026 its intention to acquire Vacuumschmelze (VAC) for $1.9 billion, according to Handelsblatt. VAC is a German rare earth magnet manufacturer headquartered in Hanau, in the Frankfurt region.

The German government has launched an Investitionsprüfung—a formal foreign investment review procedure—for this transaction. The opening was confirmed in a letter from Germany's Federal Ministry of Economics to a member of parliament, obtained by Bloomberg.

According to sources cited by Bloomberg, Berlin is expected to impose conditions to ensure that the production facility in the Frankfurt region remains central to the business after the acquisition, rather than block the deal outright.

A spokesperson for Germany's Federal Ministry of Economics indicated on July 25, 2026 that she had "no information on this matter" regarding the conditions reported by Bloomberg.

Vacuumschmelze, a strategic rare earth magnet player

VAC is one of the few rare earth magnet producers located outside China. The company employs 3,600 people in Hanau and supplies over 1,000 customers worldwide, including US automaker General Motors.

$1.9 billion

Amount offered by Energy Fuels for VAC acquisition

3,600

VAC employees in Hanau (Hesse)

Over 1,000

VAC customers worldwide

Through this acquisition, Energy Fuels aims to become one of the world's largest non-Chinese producers of rare earth magnets for aerospace, defense, and renewable energy applications.

The position of VAC's CEO

Erik Eschen, CEO of VAC, has stated that he expects the transaction to face scrutiny and is prepared to commit to maintaining Germany's production site. He views the acquisition as an opportunity for Germany to secure access to critical raw materials through Energy Fuels' supply channels.

However, Eschen has acknowledged one risk: that US customers could be prioritized in deliveries following the acquisition. He has also indicated that other European countries are reviewing the deal as well.

Context: the global rare earth race

The United States and its allies are seeking to reduce their dependence on China for critical minerals, as Beijing dominates the global rare earth market. The G7 is working to establish limits on imports of raw materials from China.