EM&T now positioned as the only U.S.-listed company outside China with proven, commercial-scale production of rare earth permanent magnets, including high-performance grades, building on more than eighteen years of operating history
Subsequent to quarter-end, secured binding purchase orders for thirteen ULVAC sintered rare earth magnet production machines, representing more than a full year of ULVAC’s planned global Western output, expected to scale annual rare earth magnet production capacity to approximately 10,000 metric tons by November 2026, ahead of the January 1, 2027 DFARS deadline restricting Chinese-origin rare earth magnets in U.S. defense systems
Operating against a strongly aligned U.S. industrial policy backdrop, including the Trump administration’s January 2026 Section 232 Proclamation identifying rare earth permanent magnets as “vital to nearly all electronics and vehicles” and the February 2026 launch of the $12 billion Project Vault Strategic Critical Minerals Reserve
MIAMI, FL, May 22, 2026 (GLOBE NEWSWIRE) — Evolution Metals & Technologies Corp. (“EM&T” or the “Company”) (NASDAQ:EMAT), a U.S.-based critical materials and advanced manufacturing company focused on building a secure, vertically integrated supply chain for rare earth permanent magnets, battery materials, and related critical technologies, today reported financial results for the three months ended March 31, 2026 and provided a corporate update on recent operational progress and business developments.
David Wilcox, Executive Chairman of EM&T, stated: “The first quarter of 2026 was a foundational transition for the Company. We successfully completed our transition to being a public company and began trading on Nasdaq, bringing into a single public-company platform more than eighteen years of commercial-scale rare earth permanent magnet production serving global OEM customers. Subsequent to quarter-end, we secured a significant capital injection and immediately executed binding purchase orders for thirteen ULVAC sintered magnet production machines that, in our view, place EM&T on a credible path to deliver high-performance rare earth permanent magnets at the scale required by the U.S. defense industrial base ahead of the January 1, 2027 DFARS deadline. We are further encouraged by the positive policy tailwinds including the Trump administration’s January 2026 Section 232 Proclamation and February 2026 launch of Project Vault which we believe further underscore the strategic importance of building a vertically integrated, recycling-led U.S. critical materials supply chain, covering rare earth permanent magnets and battery materials, outside of China. We expect the pace of execution to accelerate from here.”
Recent Corporate and Business Highlights
- Continued commercial-scale rare earth magnet production: During the quarter, the Company continued the commercial production and sale of bonded and sintered rare earth permanent magnets through its consolidated operating subsidiaries, building on more than eighteen years of operating history serving global OEM customers across the automotive, consumer electronics, defense, and industrial sectors. The Company’s grade 42SH sintered magnets remain in commercial production, with grade 48SH high-performance sintered magnets in the final stages of customer quality certification. The existing operating platform serves as the operational and technical foundation for the Company’s planned U.S. industrial campus expansion.
- Advanced commercial and strategic discussions in support of the U.S. industrial campus buildout: Throughout the first quarter, management progressed commercial discussions, supplier relationships, and customer engagements in support of the Company’s planned U.S. industrial campus, designed to scale total annual rare earth permanent magnet production capacity to approximately 55,000 metric tons, including approximately 47,000 metric tons of high-performance sintered magnets. The U.S. industrial campus is also designed to incorporate battery materials production, including precursor cathode active materials, in support of growing North American electric vehicle and energy storage demand. The Company expects to announce additional commercial and strategic milestones in the coming quarters as these workstreams mature.
- Began Trading on Nasdaq; a strategic foundation for capital formation and commercial scaling: On January 6, 2026, EM&T began trading on Nasdaq Global Market under the ticker “EMAT”. The Company believes the public-company platform established at the start of the quarter provided the foundation, capital markets access, and visibility required to execute on the Company’s strategy of becoming the largest planned producer of rare earth permanent magnets outside of China.
- $100 million convertible debenture facility with Yorkville Advisors Global: Subsequent to the end of the quarter, on May 7, 2026, the Company entered into a Securities Purchase Agreement with YA II PN, Ltd., a fund managed by Yorkville Advisors Global, LP, providing for the issuance and sale of convertible debentures in an aggregate principal amount of up to $100 million. The Company intends to use the proceeds to accelerate the expansion of its commercial operations, including the intended scaling of annual rare earth magnet production capacity through the integration of the ULVAC equipment described below and the broader buildout of its planned U.S. industrial campus.
- Binding purchase orders for thirteen ULVAC sintered rare earth magnet production machines: Subsequent to the end of the quarter, on May 13, 2026, the Company entered into binding purchase orders with ULVAC Korea, Ltd., a subsidiary of ULVAC, Inc.-widely regarded as the global standard-setter for sintered NdFeB magnet production technology- for thirteen high-performance sintered rare earth magnet production machines, with scheduled delivery and installation by November 2026. Upon commissioning, the Company expects this expansion to increase its annual rare earth magnet production capacity to approximately 10,000 metric tons, including approximately 6,000 metric tons of high-performance sintered magnets. The Company believes this scale-up will position EM&T to become the largest planned producer of rare earth permanent magnets outside of China and a strategic supplier to U.S. defense, automotive, wind energy, robotics, and advanced manufacturing customers ahead of the January 1, 2027 effective date of DFARS 252.225-7052, the U.S. Department of Defense rule restricting the use of Chinese-origin rare earth magnets in covered defense systems.
- Supportive U.S. industrial policy environment for domestic rare earth and critical materials producers: During and immediately following the first quarter, the Trump administration took multiple actions that the Company believes underscore the strategic importance of, and capital tailwinds available to, the domestic critical materials supply chain. On January 14, 2026, the President of the United States issued Proclamation 11001 under Section 232 of the Trade Expansion Act of 1962, adjusting imports of processed critical minerals and their derivative products, including rare earth permanent magnets, and directing the Secretary of Commerce and the United States Trade Representative to negotiate agreements addressing national security risks arising from foreign supply concentration. Proclamation 11001 states that “rare earth permanent magnets — a derivative product of processed critical minerals — are used in and vital to nearly all electronics and vehicles.” On February 2, 2026, the Export-Import Bank of the United States, in coordination with the White House, announced Project Vault, the U.S. Strategic Critical Minerals Reserve, supported by a Direct Loan of up to $10 billion from EXIM and approximately $2 billion of private capital. On April 17, 2026, the United States and the Republic of Korea finalized the U.S.-Korea Critical Minerals Framework in Washington, reinforcing the strategic relevance of the Company’s Korean operating platform and planned U.S. industrial campus. The Company believes these actions, alongside the January 1, 2027 effective date of DFARS 252.225-7052, reinforce the strategic positioning of EM&T’s planned U.S. industrial campus and its existing commercial-scale rare earth magnet operations.
Frank Moon, Chief Executive Officer of EM&T, added: “The first quarter was the quarter where we set the table. We finished the merger, resulting in the Company trading on Nasdaq, and consolidated the operating subsidiaries that already have nearly two decades of commercial-scale rare earth magnet production behind them, while in parallel pushing forward the commercial conversations and supplier relationships that allowed us to move so decisively in May with Yorkville and ULVAC. The ULVAC binding purchase order would not have been possible without the decade-plus of relationship-building my engineering team brings to the table, but it also would not have been deliverable on this timeline without the public-company platform and capital base we put in place in the first quarter. With our team of 42 engineers and 11 PhDs, and with more than 30 years of experience making magnets and processing materials, we believe we will be producing at an annual rate of 10,000 tons of magnets before the end of 2026.”
Financial Highlights for the Three Months Ended March 31, 2026
Adjusted Net Loss (Non-GAAP). Adjusted Net Loss was $15.1 million, or $(0.02) per basic and diluted share, for the three months ended March 31, 2026, compared with $2.5 million, or $(0.01) per basic and diluted share, for the three months ended March 31, 2025.1
Net Loss. Net loss for the three months ended March 31, 2026 was $440.3 million, or $(0.72) per basic and diluted share, compared with a net loss of $18.0 million, or $(0.04) per basic and diluted share, for the three months ended March 31, 2025.
Gross Profit. Gross profit for the first quarter of 2026 was $0.4 million, representing a gross margin of approximately 24%, reflecting commercial pricing at the Company’s operating subsidiaries and the limited consolidated reporting period.
Operating Expenses. Selling, general and administrative (“SG&A”) expenses for the three months ended March 31, 2026 were $16.1 million, compared with $2.8 million for the three months ended March 31, 2025. The increase reflects (i) the consolidation of the Company’s operating subsidiaries, (ii) approximately $1.5 million of corporate-level SG&A expenses paid by a related-party entity for the benefit of the Company, and (iii) one-time public-company, transaction, and post-combination integration costs incurred during the Company’s first quarter as a Nasdaq-listed entity.
Operating Loss. Operating loss for the first quarter of 2026 was $15.7 million, compared with an operating loss of $2.8 million for the first quarter of 2025.
Change in Fair Value of Financial Instruments. The Company recognized a non-cash charge of $425.2 million in the three months ended March 31, 2026 related to the change in fair value of the July Investment Agreement Derivative ($234.7 million) and the CPU Share Allocation Obligation ($190.5 million). Both instruments were created prior to the business combination, were remeasured at fair value at the January 5, 2026 closing date based on the Company’s closing share price, and were settled and de-recognized at closing. These charges are non-cash, are not expected to recur in future periods, and do not affect the Company’s ongoing operating results or cash position.
About Evolution Metals & Technologies Corp.
Evolution Metals & Technologies Corp. is a U.S.-based critical materials and advanced manufacturing company listed on Nasdaq (EMAT). EM&T is focused on building a secure, non-China-dependent supply chain for rare earth permanent magnets, battery materials, and related critical technologies, leveraging proven commercial-scale operations, advanced processing technologies, and strategic partnerships. EM&T operates what it believes is the only known vertically stacked critical materials supply chain spanning from end-of-life electronics and batteries, as well as high-grade concentrates, through the manufacture of finished rare earth magnets, including high-performance rare earth magnets, and battery materials. For additional information, please visit https://investors.evolution-metals.com.
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures, including Adjusted Net Loss and Adjusted Net Loss per share (basic and diluted). Adjusted Net Loss is defined as GAAP net loss …