Aclara Resources Forms Strategic Alliance with VAC for Sustainable Permanent Magnets

Aclara Resources Chief Executive Officer Ramon Barua has announced a strategic alliance with VACUUMSCHMELZE GmbH & Co (VAC) aimed at creating a sustainable supply chain for permanent magnets. The companies signed a Memorandum of Understanding (MOU), which sets a preliminary framework for collaborating on a comprehensive 'mine-to-magnets' solution that meets Environmental, Social, and Governance (ESG) standards.

Barua highlighted the growing market demand for electric vehicles (EVs), wind turbines, and other clean technologies as a driving force behind this partnership. These sectors rely heavily on rare earth permanent magnets, which must adhere to stringent ESG criteria. Permanent magnets are integral to these technologies, necessitating substantial amounts of both light and heavy rare earth minerals.

The current market for these rare earth minerals and the capacity to process them into permanent magnets is limited, with a significant concentration of supply coming from Asia. This scenario presents a critical opportunity to develop a resilient and ESG-focused supply chain. Aclara's strategic position as a potential supplier of Dysprosium and Terbium—two essential heavy rare earth minerals for permanent magnets—makes this alliance particularly noteworthy.

Aclara is actively working on two ionic clay projects in Chile and Brazil, aimed at producing high-purity heavy rare earth carbonate. Additionally, the company is advancing its processing technology through its US-based subsidiary, which will enable the conversion of the carbonate into magnetic alloys. These alloys are crucial inputs for VAC's production of permanent magnets.

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 aligns with Aclara’s commitment to sustainability and innovation, positioning the company to meet the increasing global demand for environmentally responsible and high-performance permanent magnets.

Through this partnership, Aclara Resources and VAC aim to significantly contribute to the advancement of clean technologies and the broader objective of reducing the carbon footprint of essential industries.