Mkango Resources Ltd, together with its 79 %–owned associate Magnito and partner CoTec, have established a new joint venture, HyProMag USA LLC.
This venture is dedicated to developing a sustainable rare earth magnet recycling and production business, characterized by low cost and low carbon footprint. The initiative focuses on the recycling of rare earth magnets using the HPMS (Hydrogen Processing of Magnet Scrap) technology, developed at the University of Birmingham, which has received approximately US$100 million in research and development funding.
The joint venture’s first step is to complete a bankable feasibility study, envisaging a hub and spoke model utilizing three HPMS vessels and a magnet manufacturing hub. The partners have already initiated a ‘Request for Proposal’ process from leading engineering, procurement, and construction management providers and have ordered three HPMS reactors to expedite the project’s development in the United States. The feasibility study is a key step, following which CoTec and Mkango will decide on the construction of the US project.
The CEOs of CoTec and Mkango have expressed their commitment to this project, highlighting its alignment with their growth strategies, its environmental benefits, and the strong market interest in recycled magnets. They also plan to explore U.S. government funding and strategic partnerships for feed supply and rare earth element magnet offtake in the first half of 2024.
Will Dawes, Mkango CEO commented: “We see the United States as a core component of our growth strategy and look forward to progressing the US feasibility study over the year, in parallel with further development of operations in the UK, Germany and other jurisdictions.
HyProMag’s recycling technology has major competitive advantages versus other recycling technologies and is a key enabler for cost-effective and energy-efficient separation, recycling and production of rare earth magnets with a significantly reduced carbon footprint. We are receiving strong interest for recycled magnets from potential customers and for recycling solutions from original equipment manufacturers (“OEMs”), and automotive and recycling companies.”
HPMS technology was developed at the University of Birmingham, underpinned by approximately US$100 million of research and development funding, and has major competitive advantages versus other rare earth magnet recycling technologies, which are largely focused on chemical processes but do not solve the challenges of liberating magnets from end-of-life scrap streams -HPMS provides the solution. HyProMag’s company presentation can be viewed via the following link: HyProMag Corporate Presentation
Mkango Resources Ltd’s corporate strategy is to become a leader in the production of recycled rare earth magnets and alloys, as well as to develop new sustainable sources of neodymium, praseodymium, dysprosium, and terbium. This strategy positions Mkango uniquely in the rare earths sector, integrating mining, refining, and recycling.
Revenue from the joint venture is anticipated for 2025/2026, marking a significant milestone in the development of sustainable rare earth magnet recycling technologies and contributing to the broader goal of a lower carbon future in the extraction industry.
