Aclara Announces Strategic Alliance with Vac to Develop Permanent Magnet Supply Chain
ACLARA ANNOUNCES STRATEGIC ALLIANCE WITH VAC TO DEVELOP PERMANENT
MAGNET SUPPLY CHAIN
TORONTO, ON, July 09, 2024 – Aclara Resources Inc. (“Aclara” or “Company”) (TSX: ARA) is pleased to
announce that it has signed a M emorandum of Understanding with VACUUMSCHMELZE GmbH & Co. KG
("VAC"), which establishes a non-binding, non-exclusive, preliminary agreement, to jointly approach potential
clients as a “mine -to-magnets” solution for ESG compliant permanent magnets (the “Preliminary
Agreement”).
Aclara and VAC believe that there is a significant market opportunity driven by the rising demand for electric
vehicles ( “EVs”), wind turbines, and other clean technologies that require rare earth permanent magnets
produced pursuant to ever-increasing ESG standards. Such permanent magnets require significant
quantities of both light and heavy rare earth minerals. Currently, obtaining these rare earth mineral materials
whilst also having the capacity to process them, combined with the industrial technology needed to fabricate
permanent magnets , is very limited and concentrated among a few Asia-based suppliers. This
supply/demand dynamics results in a promising background to develop a new, resilient, ESG-focused supply
for permanent magnets.
The strategic alliance between VAC and Aclara is unique due to Aclara being one of the very few potential
suppliers of Dysprosium and Terbium , two highly coveted heavy rare earth minerals which are key in the
production of permanent magnets and are not easily available outside of Asia. Aclara is currently developing
two ionic clay projects, one in Chile and another in Brazil, for the production of a high-purity heavy rare earth
carbonate. In addition, the Company is developing processing technology through its US-based subsidiary
to be able to receive this carbonate and produce with it magnetic alloys. These alloys, in turn, are the key
input required by VAC to produce permanent magnets.
VAC is considered the largest producer of rare earths magnets outside of Asia, with more than 40 years of
experience in magnet making technology. VAC, whose main permanent magnet facility is located in Hanau,
Germany, recently executed a contract with General Motors (GM) to supply GM with permanent magnets by
building a new magnets’ plant in the State of South Carolina, United States.
Accordingly, each of Aclara and VAC are strategically positioned to collaborate to build a reliable long-term
solution to supply high-performance permanent magnets to power EV motors and other technologies for our
global clients.
Agreement Structure and Next Steps
The collaborative relationship between Aclara and VAC is not structured as a legal entity . Instead, each of
the parties will engage in collaborative efforts, in a relationship characterized as (i) preferred supplier-
purchaser and (ii) cooperation on marketing, customer relations, and related matters. Highlights of a number
of the collaborative next steps include but are not limited to:
▪ VAC’s intention to support the further development of Aclara’s rare earth metals and alloys existing
joint venture project with CAP S.A., by providing product specification require ments to produce the
high-performance permanent magnets used in EVs;
▪ the intention of both parties to jointly analy ze the mine to magnets cost structure to develop a n
optimal cost-effective solution for potential customers; and
▪ the intention of both parties to jointly approach potential new customers and present them with a
‘one-stop-shop’ solution to secure geopolitically independent and ESG responsible permanent
magnets.
VAC’s CEO, Erik Eschen, commented:
“We are thrilled to announce the fortification of our partnership with Aclara, a frontrunner in the development
of ionic clay mines in South America. This collaboration is aimed at streamlining the supply chain for rare
earth elements, specifically Dysprosi um and Terbium. These elements play a pivotal role in the
decarbonisation of the transportation sector and the generation of renewable energy. By joining forces with
Aclara, VAC is committed to tackling one of the most pressing issues of our era. Our joint efforts not only
create value for our customers and shareholders but also contribute significantly to the well -being of our
planet.”
Aclara’s CEO, Ramon Barua, commented:
“This strategic alliance is expected to offer great synergies to both Aclara and VAC as it combines a clean
source of heavy rare earths with the technology needed to convert those resources into actual products. It
is the first step towards solving a real need in the market, as the transition to electric vehicles requires new
rare earths supply chains, which are currently not being addressed in a comprehensive manner. This strategic
alliance will create value for VAC, Aclara, OEMs and for our planet, as we will be closer to achieving our
climate change goals in a sustainable manner.”
About VAC
VACUUMSCHMELZE (VAC) is a leading global producer of advanced magnetic solutions, rare earth
permanent magnets, and inductive components. With extensive application know -how and 100 years of
experience in material science and product development, VAC designs and manufactures mission critical
solutions for a wide variety of industries, including renewable energy, e -mobility, automotive, industrial
automation, medical, aeros pace and defense. VAC’s unique ability to develop and manufacture from base
elements through final products enables us to provide customers optimal form factors and performance,
generating best in class efficient solutions in an environmentally conscious manner. More information is
available at www.vacuumschmelze.com. VAC is a portfolio company of Ara Partners, a global private equity
firm that is decarbonizing the industrial economy.
About Acara
Aclara Resources Inc. (TSX: ARA) is a development -stage company that is focused on heavy rare earth
mineral resources hosted in Ion -Adsorption Clay deposits. The Company’s rare earth mineral resource
development projects include the Penco Module in the Bio-Bio Region of Chile and the Carina Module in the
State of Goiás, Brazil.
Aclara's rare earth extraction process offers several environmentally attractive features. Circular mineral
harvesting does not involve blasting, crushing, or milling, and therefore does not generate tailings and
eliminates the need for a tailing’s storage facility. The extraction process developed by Aclara minimizes
water consumption through high levels of water recirculation made possible by the inclusion of a water
treatment facility within its patented process design. The ionic clay feedstock is amenab le to leaching with
a common fertilizer main reagent, ammonium sulfate. In addition to the development of the Penco Module
and the Carina Module, the Company will continue to identify and evaluate opportunities to increase future
production of heavy rare earths through greenfield exploration programs and the development of additional
projects within the Company's current concessions in Brazil, Chile, and Peru.
Forward-Looking Statements
This news release contains “forward -looking information” within the meaning of applicable securities
legislation, which reflects the Company’s current expectations regarding future events, including statements
with regard to, among other things, the Company’s expectations including statements with regard to, among
other things, the Company’s strategic investments and partnerships, the current and future valuation of the
Company, the economic effect of the Preliminary Agreement, the success of its and its subsidiary’s
development projects and the Company’s expectations as to the partnership and the transactions contemplated
thereby. Forward-looking information is based on a number of assumptions and is subject to a number of risks
and uncertainties, many of which are beyond the Company’s control. Such risks and uncertainties include, but
are not limited to, the factors discussed under “Risk Factors” in the Company’s annual information form dated
as of March 22, 2024 filed on the Company’s SEDAR+ profile. Actual results, timing, performance, achievements
or future events or developments could differ materially from those expressed or implied herein. Unless
otherwise noted or the context otherwise indicates, the forward -looking information contained in th is news
release is provided as of the date of this news release and the Company does not undertake any obligation to
update such forward -looking information, whether as a result of new information, future events or otherwise,
except as expressly required under applicable securities laws.
For further information, please contact:
Ramon Barua
Chief Executive Officer