In 2023, in a significant move to advance the decarbonization of transportation in North America, Ara Partners acquired Vacuumschmelze (VAC) from Apollo Global Management. This strategic acquisition underscores Ara Partners' commitment to sustainable solutions, particularly in the burgeoning electric vehicle (EV) market.

Who is Vacuumschmelze?

Headquartered in Germany, VAC is a leading producer of magnetic alloys of rare earth materials. These advanced materials are critical components in electric vehicles, industrial processes, clean energy generation, medical technologies, and aerospace applications. VAC’s expertise in producing high-performance permanent magnets positions it as a key player in the transition to greener technologies.

Expansion Plans in North America

To bolster its footprint in the EV sector, VAC plans to establish a manufacturing facility in North America. This facility will primarily supply General Motors with essential components for their electric vehicle lineup. By setting up this local production capability, VAC aims to enhance the supply chain's reliability and sustainability, reducing dependency on distant suppliers.

Global Procurement and Western Supply Chain Development

VAC sources its rare earth materials from diverse geographies, including China, Malaysia, and Slovakia. However, a notable aspect of VAC's strategy is its dedication to scaling a Western supply chain. As the only supplier of rare earth magnetic materials for EVs in the Western hemisphere, VAC is uniquely positioned to meet the growing demand for these critical components within the region.

The Importance of Permanent Magnets in EVs

Permanent magnets are pivotal in the operation of electric vehicles, accounting for 85% of the action in EVs. Motors equipped with rare earth magnets exhibit significantly less wear and tear, higher efficiency, and greater torque density compared to their conventional counterparts. These attributes are crucial for enhancing the performance and longevity of electric vehicles, making VAC’s products highly sought after in the industry.

Ara Partners' Vision

Ara Partners' acquisition of VAC is a forward-thinking move that aligns with their mission to drive sustainable solutions in critical sectors. By integrating VAC’s advanced permanent magnet technology into North America’s EV supply chain, Ara Partners is poised to play a crucial role in the region's shift towards greener transportation. 

Apex Magnets

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