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Immediate Release

Department of Defense Enters an Agreement to Expand Domestic Manufacturing to Strengthen U.S. Supply Chains for Rare Earth Magnets

The Office of the Assistant Secretary of Defense for Industrial Base Policy, through its Manufacturing Capability Expansion and Investment Prioritization (MCEIP) office, issued an award to E-VAC Magnetics, LLC (E-VAC) to establish a domestic rare earth permanent magnet manufacturing capability.  E-VAC is  part of VAC Group, a manufacturer of rare earth permanent magnets

The agreement will provide $94.1 million to E-VAC to acquire and install manufacturing equipment, operationalize technical infrastructure, and engineer production lines. E-VAC will perform this work to establish high volume rare earth permanent magnet production by 2025.

Rare earth permanent magnets are essential components in the F-35, Unmanned Aerial Vehicles, and numerous other defense systems. These national security related uses, represent a small part of the US commercial need for rare earth element magnets.  As a result, MCEIP is dedicated to using its resources to help stimulate private capital as evidenced by the E-VAC investment.

"We're building on previous DoD awards, that augment or complement other Agency investments for rare earth minerals to help establish an integrated, domestic rare earth supply chain from mine to magnet," said Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy. "IBP is reinforcing the Administration's goal to build a rare earth industrial base fully capable of meeting our national defense requirements."

About the Department of Defense's Office of the Assistant Secretary of Defense for Industrial Base Policy

The Assistant Secretary of Defense for Industrial Base Policy is the principal advisor to the Under Secretary of Defense for Acquisition and Sustainment (USD(A&S)) for developing Department of Defense policies for the maintenance of the United States defense industrial base (DIB), executing small business programs and policy, and conduction geo-economic analysis and assessments.  The office also provides the USD(A&S) with recommendations on budget matters related to the DIB, anticipates and closes gaps in manufacturing capabilities for defense systems, and assesses impacts related to mergers, acquisition, and divestitures.  IBP monitors and assesses the impact of foreign investments in the United States and executes authorities under sections 2501 and 2505 U.S.C. Title 10.