Mkango Resources Limited (AIM/TSX-V: MKA) has agreed to acquire Heraeus Remloy in a deal valued at €8 million, significantly expanding its rare earth magnet recycling and processing capabilities in Europe.
The transaction will be completed through an asset purchase agreement, with an initial €5 million payment funded from Mkango’s recent equity placing.
The acquisition includes a fully commissioned recycling and processing facility in Germany together with a substantial stockpile of more than 300 tonnes of feedstock material.
The plant is capable of producing neodymium-iron-boron alloy powders used in the permanent magnet sector, which is seeing growing demand from electric vehicles, renewable energy and advanced manufacturing industries.
Management said the deal complements Mkango’s existing HyProMag operations and strengthens the company’s strategy of building an integrated rare earth supply chain spanning recycling, processing and magnet production.
The company believes the acquisition could generate operational synergies, improve processing capacity and accelerate growth opportunities across its European recycling platform.
Completion of the transaction is expected within the next three months, subject to customary closing conditions.
Highlights
· Fully commissioned plant with significant investment in equipment and feedstock to date, no further major development capital expenditure required and strong operational and technical team in place
· Production test runs underway for customer samples, with first commercial sales of NdFeB alloy powder product targeted by the end of the year
· Very large stockpile of rare earth magnet and alloy feedstock totalling more than 300 tonnes underpins operations and provides future trading opportunities
· Complementary product suite to HyProMag, further enhancing Mkango’s one-stop-shop solution for customers
· Potential synergies with the Mkango group include:
o Enhanced platform for growth in major market for magnetic materials through the development of a further operating site in Germany
o Supply of end-of-life magnets from the Remloy stockpile for processing by the HyProMag group
o Supply of feedstock derived from Hydrogen Processing of Magnet Scrap (“HPMS”) by HyProMag to Remloy
o Technical and grant funding collaboration between Mkango, Remloy, HyProMag, University of Birmingham and University of Pforzheim
o Co-marketing of products from Mkango, HyProMag and Remloy, providing an expanded product suite to customers
o Future opportunity to supply primary rare earth feedstock from Mkango’s Songwe Hill project to Remloy operations for blending with recycled feedstock
· Significant growth opportunities through scale-up of existing operations and bolt on opportunities for other rare earth metal and alloy process technologies such as strip casting
William Dawes, Chief Executive Officer of Mkango commented: “We are very pleased to announce this Transaction and look forward to working with the Remloy team and all stakeholders to grow the Remloy business within Mkango and to further develop the rare earth supply chain and ecosystem for recycling and magnet manufacturing in Germany and its neighbours. On April 28, 2026, HyProMag GmbH’s production facility in Pforzheim was officially opened by senior representatives of the German Government and following this Transaction, Mkango will have two rare earth plants in Germany with the capability to provide customers with a sustainable supply of rare earth products for the sintered, bonded and hot deformed magnet markets.”
David Bender, Head of Remloy, commented: “I am very pleased to continue the Remloy journey together with Mkango. The Remloy team has worked hard to develop the business to this point, and the next phase will be about execution: bringing products to customers, scaling commercial activities, and leveraging synergies across the Mkango group. I am convinced that this setup provides a strong basis to further develop rare earth magnet production and recycling capabilities in Germany and Europe.”
Total capacity of the production facility is 500 tonnes of NdFeB alloy per year and the plant is targeting scale-up to this level of production over the next few years with minimal capital expenditure required. The assets are currently non-revenue generating and therefore no historic profits are attributable to them, given the facility is still in the start-up phase. Multiple production runs have been completed with the current focus on product optimisation, sample generation for customers and ongoing offtake discussions to support the commencement of commercial sales and targeted scale-up of operations, whilst capitalising on potential synergies with Mkango and HyProMag.
The stockpile comprises more than 300 tonnes of rare earth magnets, rare earth alloys and other raw materials, which helps underpin the growth strategy. With this significant stockpile, Mkango is now very well positioned in the secondary market for magnetic materials, further enhanced by access to HPMS technology being commercialised by HyProMag, which enables cost effective and energy efficient liberation of embedded NdFeB magnets from end-of-life and production scrap streams.
The Transaction is expected to close in the summer of 2026, subject to customary closing conditions and receipt of required regulatory approvals.
