e-VAC Magnetics Receives Historic $111.9 Million Qualifying Advanced Energy Project Tax Credit for Construction of First U.S. Manufacturing Facility in South Carolina
e-VAC Magnetics (“e-VAC” or the “Company”), a leading manufacturer of rare earth permanent magnets in the Western Hemisphere, today announced that it has been awarded a $111.9 million Qualifying Advanced Energy Project Tax Credit (“Section 48c”) to advance the construction of its first U.S. manufacturing facility in Sumter, South Carolina. The facility was one of more than 100 projects to receive an award under the Section 48c program, which is designed to help accelerate domestic clean energy manufacturing and reduce greenhouse gas emissions at industrial facilities.
e-VAC, which is part of Vacuumschmelze (“VAC Group” or “VAC”), produces rare earth neodymium-iron-boron (NdFeB) magnets, which are critical to automotive, defense, industrial and renewable energy applications. The Company broke ground on the state-of-the-art facility in March, and expects to complete the facility in late fall 2025. The project is expected to create 300 new jobs in Sumter.
“e-VAC is proud to invest in America’s 21st century supply chain and to advance clean energy manufacturing efforts,” said VAC Group Chief Executive Officer Dr. Erik Eschen. “This award demonstrates the importance of high-quality, high-performance magnetic materials, which are key enablers to electrification and energy efficiency across a range of industries. Our facility will help to establish a resilient, U.S.-based supply chain for decades to come.”
In January 2023, e-VAC announced a binding long-term supply agreement with GM to manufacture permanent magnets, using locally sourced raw materials, for the electric motors used in a broad portfolio of EVs in North America. In September 2023, the U.S. Department of Defense entered into an agreement with e-VAC as part of its ‘Mine-to-Magnet’ supply chain initiative, ensuring U.S. companies are able to source and produce the rare earth permanent magnets that are essential components in the F-35, Unmanned Aerial Vehicles, and numerous other defense systems.
In October 2023, VAC was acquired by Ara Partners (“Ara”), a private equity and infrastructure firm that specializes in industrial decarbonization investments. Ara’s investment has provided VAC with the capital to expand and build a robust rare earths value chain.
“The Inflation Reduction Act is helping companies invest in America and build critical domestic supply chains,” said Tuan Tran, Partner at Ara Partners. “Suppliers like e-VAC will play an important role in decarbonizing the industrial world, and we are committed to helping these companies expand their footprints here in the U.S. while substantially reducing emissions.”
