Mkango Resources has reported significant progress in developing its U.S. rare earth magnet recycling platform, with its HyProMag USA subsidiary entering the execution phase of its flagship Texas Hub project.
The company has begun procuring critical long-lead equipment, including three Hydrogen Processing of Magnet Scrap (HPMS) vessels, to support commissioning of the Texas facility in the second half of 2027. The move follows completion of a Class 2 capital cost estimate and builds on the successful commissioning of HyProMag facilities in the UK and Germany.
Updated engineering work has also increased projected production capacity. The Texas Hub, supported by pre-processing facilities in South Carolina and Nevada, is now expected to produce approximately 1,048 tonnes of recycled neodymium-iron-boron (NdFeB) magnets annually, alongside a further 478 tonnes of NdFeB co-products.
The economics remain compelling. Based on current market prices, the project is forecast to generate a post-tax net present value of approximately $416 million and an internal rate of return of 26.3%. Using forecast market prices, the valuation increases to nearly $800 million with an IRR exceeding 37%.
Initial capital expenditure is estimated at around $152 million over a one-year construction period.
HyProMag USA is simultaneously advancing discussions with feedstock suppliers, potential customers and financing partners. Through its partnership with Intelligent Lifecycle Solutions, the company continues to expand its supply of recyclable rare earth materials, including hard disk drives, electric motor components, wind turbine magnets, speakers and MRI equipment.
Commercial discussions are also progressing, with magnet samples currently being supplied to prospective customers for qualification and testing.
To support future growth, HyProMag USA has launched a search for a U.S.-based chief executive and chief financial officer as it evaluates a potential future public listing in the United States. While no decision has yet been made, management confirmed discussions with advisers and investment banks are underway, with any listing unlikely before late 2026 or early 2027.
Looking beyond Texas, the company is planning a broader expansion strategy. A pre-feasibility study due in the third quarter of 2026 will assess the rollout of additional facilities modelled on the Texas Hub, with the aim of increasing U.S. production capacity to approximately 4,656 tonnes of NdFeB products annually.
Chief Executive Will Dawes said HyProMag USA is well positioned to become an important contributor to domestic U.S. rare earth supply chains, leveraging proven recycling and magnet manufacturing technologies already operating commercially in Europe.
For Mkango investors, the update marks another step towards commercialisation of a potentially high-value business positioned at the intersection of critical minerals, recycling, electrification and supply chain security.
