--- title: "Mkango outlines $2.8bn US rare earth magnet expansion" publisher: "Share Talk" author: "sharetalk" published: "2026-10-27T07:18:01+00:00" modified: "2026-10-27T07:18:01+00:00" date: 2026-10-27 canonical: "https://www.share-talk.com/mkango-outlines-2-8bn-us-rare-earth-magnet-expansion/" category: "Mining" categories: ["Mining"] tags: ["Africa", "Alexander Lemon", "anaesthetic machine", "base metals", "Blantyre", "CapeTown", "Cobalt", "Dr Paul Armitage", "drilling", "ERMA", "Gold", "Graphite", "hand-auger", "HyProMag GmbH", "Leon Louw", "Lithium", "Maginito", "magnet recycling", "Malawi", "Mercy James Centre", "MiningIndaba", "MKA", "Mkango", "Mkango Magnetic Materials", "mkango resources", "Nickel", "NobleGroup", "Poland", "Queen Elizabeth Central Hospital", "rare earth", "Rare Earth Magnets", "RareEarths", "Recycled", "REE", "rutile", "Songwe Hil", "Songwe Hill", "Talaxis", "TSX Venture Exchange", "URANIUM", "William Dawes"] image: "https://i0.wp.com/www.share-talk.com/wp-content/uploads/2026/10/3e2ba2be-5dc3-41ec-9a7a-38bc4e385912.png?fit=1727%2C911&quality=80&ssl=1" format: "news" language: "en-GB" --- # Mkango outlines $2.8bn US rare earth magnet expansion **Published:** October 27, 2026 **Author:** sharetalk **Categories:** Mining **Tags:** Africa, Alexander Lemon, anaesthetic machine, base metals, Blantyre, CapeTown, Cobalt, Dr Paul Armitage, drilling, ERMA, Gold, Graphite, hand-auger, HyProMag GmbH, Leon Louw, Lithium, Maginito, magnet recycling, Malawi, Mercy James Centre, MiningIndaba, MKA, Mkango, Mkango Magnetic Materials, mkango resources, Nickel, NobleGroup, Poland, Queen Elizabeth Central Hospital, rare earth, Rare Earth Magnets, RareEarths, Recycled, REE, rutile, Songwe Hil, Songwe Hill, Talaxis, TSX Venture Exchange, URANIUM, William Dawes **Featured image:** ![](https://i0.wp.com/www.share-talk.com/wp-content/uploads/2026/10/3e2ba2be-5dc3-41ec-9a7a-38bc4e385912.png?fit=1727%2C911&quality=80&ssl=1) --- [Mkango Magnetic Materials Ltd (AIM/TSX-V: MKA)](https://www.investegate.co.uk/announcement/rns/mkango-resources--mka/hypromag-usa-pre-feasibility-study/9842382) has announced an independent pre-feasibility study outlining a major expansion of HyProMag USA’s rare earth magnet manufacturing operations, with potential combined project valuations of up to US$2.8 billion and plans to quadruple annual magnet production capacity by 2034. The study, prepared by **PegasusTSI and BBA USA**, evaluates the development of three additional manufacturing plants alongside HyProMag USA’s first facility in Northlake, Texas, where detailed engineering is underway and initial commissioning is targeted for mid-2028. **The proposed expansion could increase annual finished magnet production capacity from approximately 1,048 tonnes to 4,192 tonnes by 2034**, supporting the development of a domestic US supply chain for neodymium iron boron (NdFeB) magnets. These high-performance magnets are essential components in electric vehicles, robotics, defence systems, industrial equipment and advanced technologies. **The three proposed new plants have an estimated incremental post-tax net present value of US$1.85 billion to US$2.06 billion**, with internal rates of return ranging from 31% to 36%. The independent study estimates capital expenditure of **US$623 million to US$656 million**, depending on whether production uses only recycled magnet materials or a combination of recycled and primary rare earth alloy feedstock. The recycled-material-only scenario delivers the higher projected valuation of **US$2.06 billion and a 36% post-tax internal rate of return**, while the combined feedstock model produces an estimated US$1.85 billion valuation and 31% return. Including the existing planned Northlake facility, **HyProMag USA’s proposed four-plant manufacturing platform has a combined estimated post-tax NPV of US$2.6 billion to US$2.8 billion**. The Northlake project itself has an updated estimated post-tax NPV of approximately **US$723 million**, compared with US$797 million previously announced in June, reflecting a revised development timetable, higher capital costs and updated operating assumptions. The expansion strategy envisages new production facilities in **South Carolina, Nevada and a second Texas location**, supported by a centralised manufacturing and finishing hub. The Central Texas Hub would provide specialist alloy processing, magnet finishing, coating, quality assurance and customer qualification services, allowing regional plants to focus on recovering and manufacturing magnetic materials. **Total saleable production across the wider US platform is targeted to reach approximately 6,000 tonnes annually by 2034**, including 4,192 tonnes of finished magnets, 1,305 tonnes of magnetic alloy powder and 503 tonnes of other saleable materials. The proposed facilities would use HyProMag’s proprietary **Hydrogen Processing of Magnet Scrap (HPMS) technology**, which recovers rare earth magnetic materials from end-of-life products for reuse in new magnets. Feedstock could include electric vehicle motors, industrial machinery, data centre equipment, consumer electronics and manufacturing waste. The company believes combining recycled materials with primary alloy feedstock could improve supply flexibility and reduce dependence on individual raw material sources. **The study estimates all-in sustaining costs of US$37.40 to US$41.60 per kilogram of finished magnet products**, compared with a forecast average realised selling price of approximately US$100.50 per kilogram in 2030. These estimates support the projected operating margins, although actual results will depend on future market prices, production costs, customer demand and plant performance. The manufacturing strategy also includes **grain boundary diffusion technology**, which could increase the proportion of higher-value magnet products from approximately 10% to 20% of output. This would allow HyProMag USA to target more demanding applications across aerospace, industrial automation, medical equipment, robotics and energy infrastructure. **Mkango Chief Executive Will Dawes** said the study demonstrated the scalability of HyProMag’s recycling model and provided a framework for expanding US manufacturing capacity. He highlighted potential operational synergies between HyProMag USA and Mkango’s wider rare earth activities, including opportunities to strengthen feedstock supply chains and support development in the UK and Germany. **CoTec Chief Executive Julian Treger** described the findings as an important step towards establishing a competitive domestic US rare earth magnet manufacturing industry. The proposed expansion is expected to create approximately **300 additional jobs across Texas, South Carolina and Nevada**, alongside around 100 positions associated with the Northlake facility. The company is continuing customer qualification activities and assessing potential offtake arrangements, with further development work expected to support a future full feasibility study. **For investors, the US$2.6 billion to US$2.8 billion combined valuation highlights the potential scale of HyProMag USA’s proposed manufacturing platform**, particularly as Western governments seek to reduce reliance on overseas rare earth processing and magnet production. However, **the valuations are discounted future project cash-flow estimates rather than current asset values or valuations attributable entirely to Mkango**. HyProMag USA is jointly owned by CoTec and HyProMag Limited, with Mkango holding an indirect economic interest through its ownership of Maginito. The expansion also remains at the pre-feasibility stage and will require substantial financing, regulatory approvals, customer agreements and successful construction before the projected returns can be realised. **Attention will now turn to commissioning of the Northlake Texas facility in mid-2028, progression of the proposed expansion towards a full feasibility study and securing the commercial and financial commitments needed to support the wider US rare earth magnet manufacturing strategy.**   --- **Original URL:** https://www.share-talk.com/mkango-outlines-2-8bn-us-rare-earth-magnet-expansion/ *Created by [WP Markdown Endpoint](https://wpmarkdownendpoint.com/)*