{"id":138846,"title":"Mkango targets early 2027 start for Texas magnet production","publisher":"Share Talk","author":"sharetalk","published":"2026-07-27T06:24:51+00:00","modified":"2026-07-27T06:24:51+00:00","canonical_url":"https://www.share-talk.com/mkango-targets-early-2027-start-for-texas-magnet-production/","markdown_url":"https://www.share-talk.com/mkango-targets-early-2027-start-for-texas-magnet-production.md","json_url":"https://www.share-talk.com/mkango-targets-early-2027-start-for-texas-magnet-production.json","category":"Mining","categories":["Mining"],"tags":["Africa","Alexander Lemon","anaesthetic machine","base metals","Blantyre","CapeTown","Cobalt","Dr Paul Armitage","drilling","ERMA","Gold","Graphite","hand-auger","Leon Louw","Lithium","Maginito","Malawi","Mercy James Centre","MiningIndaba","MKA","Mkango","mkango resources","Nickel","NobleGroup","Poland","Queen Elizabeth Central Hospital","Rare Earth Magnets","RareEarths","Recycled","REE","rutile","Songwe Hil","Talaxis","TSX Venture Exchange","URANIUM","William Dawes"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2026/04/MKA-with-title-4-1.webp?fit=1200%2C675&quality=80&ssl=1","format":"news","language":"en-GB","content":"**Commissioning of finished magnet production equipment targeted for H1-2027, ahead of fully integrated U.S. operations in Q2 2028**\n\nLondon / Vancouver: July 27 2026 – Mkango Resources Ltd (AIM/TSX-V: MKA) is pleased to announce that HyProMag USA, LLC (“HyProMag USA” or the “Company”), has provided an update regarding a phased development strategy for its Ironhead facility in Dallas-Fort Worth, Texas (the “Texas Hub”), including fast-tracking of magnet finishing equipment commissioning and initial production.\n\n**Accelerated magnet finishing and initial sales**\n\nUnder the phased plan, HyProMag USA is now targeting commissioning of its initial finished neodymium-iron-boron (“NdFeB”) magnet production equipment in Texas in H1, 2027. These initial U.S. operations will utilise up to 20 tonnes of magnet blocks supplied by HyProMag Group operations in the United Kingdom[\\[1\\]](https://www.investegate.co.uk/announcement/rns/mkango-resources--mka/hypromag-usa-to-establish-early-magnet-finishing/9687774#_ftn1) and Germany[\\[2\\]](https://www.investegate.co.uk/announcement/rns/mkango-resources--mka/hypromag-usa-to-establish-early-magnet-finishing/9687774#_ftn2) to be shaped and finished at HyProMag USA’s operations for U.S. customers. The supply of finished magnet products to European customers from HyProMag operations in UK and Germany will not be affected by these arrangements.\n\nCommitment to early works capital supports commissioning of the integrated Texas Hub’s Hydrogen Processing of Magnet Scrap (“HPMS”) section now targeted for Q2 2028. At that stage, HyProMag USA expects to begin integrating U.S.-sourced magnet-bearing feedstock into its domestic recycling and magnet manufacturing operations.\n\nEstablishing this capability early also allows HyProMag USA to work directly with U.S. customers on product specifications and advance qualification programmes, in parallel with the development of the broader integrated Texas Hub. The initial finishing line will allow HyProMag USA to convert magnet blocks into customer-ready magnets produced to specific dimensions, tolerances, coatings and performance requirements.\n\n**Julian Treger, Chief Executive Officer of CoTec Holdings Corp., commented:** “HyProMag’s core advantage remains our ability to recover rare earth magnets already contained in waste and return them to productive use through a faster, simpler and more efficient short-loop recycling process. Establishing finishing capability in Texas ahead of the integrated plant is a complementary step that will allow us to begin producing customer-ready magnets in the United States and work directly with customers on specifications and qualification.”\n\n“Magnet finishing is a critical and highly technical part of the value chain, with relatively limited commercial-scale capacity available in the United States. Developing this capability early will allow HyProMag USA to derisk downstream magnet making and build customer relationships. HyProMag USA is developing the full domestic platform for extracting magnets from waste, manufacturing recycled NdFeB products and delivering finished magnets tailored to our customer requirements.”\n\n**Will Dawes, Chief Executive of Mkango Resources, commented: **“Following this development, HyProMag will be uniquely positioned to supply finished magnets to customers in the UK, Germany, USA and other markets. This gives us the flexibility to supply different products in a variety of markets and de-risks our route to market, whilst leveraging off the technical capabilities of the HyProMag group with the ongoing support of the University of Birmingham and University of Pforzheim. We look forward to supporting the accelerated development of HyProMag USA in parallel with HyProMag’ s operations in UK and Germany.”\n\n**Phased Commissioning and Ramp-Up**\n\nFollowing targeted commissioning of cutting and finishing operations in H1 2027, commissioning of the HPMS section and integrated magnet manufacturing is targeted for Q2 2028, with initial annual production capacity of approximately 400 metric tonnes of recycled sintered NdFeB magnets and approximately 278 metric tonnes of NdFeB co-products, representing total payable capacity of approximately 678 metric tonnes of NdFeB material, with staged ramp-up thereafter.\n\nAdditional equipment is expected to be installed as it is received, supporting a staged ramp-up to the Texas Hub’s previously announced full targeted annual capacity of approximately 1,526 metric tonnes of magnetic products.\n\nAs announced on June 22, 2026, HyProMag USA has commenced procurement of long-lead equipment and continues to advance detailed engineering, feedstock aggregation, customer offtake and project financing discussions.[\\[3\\]](https://www.investegate.co.uk/announcement/rns/mkango-resources--mka/hypromag-usa-to-establish-early-magnet-finishing/9687774#_ftn3)\n\nBuilding Toward Integrated U.S. Waste-to-Magnet Production\n\nThe phased development strategy is intended to establish downstream finishing capability and customer relationships ahead of commissioning the Texas Hub’s HPMS operations. Once the HPMS section is operational, HyProMag USA expects to integrate U.S.-sourced magnet-bearing feedstock into a domestic platform spanning magnet recovery, recycling, manufacturing and finishing, enabling the Company’s core objective of returning rare earth magnets already circulating in the economy to productive use as customer-ready products.\n\n**Key Highlights**\n\n•     Initial strategic focus on downstream magnet finishing: Through the installation of finishing equipment in the Texas Hub, the Company is developing expertise in downstream magnet making, which it believes will be a valuable complement to the proprietary HPMS process and a key strategic differentiator.\n\n•     Commissioning of finished magnet equipment now targeted for H1 2027 in partnership with the HyProMag Group: Initial USA production will be underpinned by NdFeB blocks supplied from the HyProMag Group (UK and Germany). This will allow the Company to provide magnets to U.S. off-takers in advance of the Texas Hub start-up of integrated HPMS to magnet operations.\n\n•     Equipment ordered and staged ramp-up: The Company has ordered several of the long-lead equipment items for the Texas Hub, including the HPMS vessels and magnet finishing equipment specified to U.S. market requirements based on feedback from potential customers. The Company will stage its early works equipment purchases to mitigate equipment supply risk and provide for a measured production ramp-up. Commissioning of the HPMS section of the Texas Hub is targeted for Q2 2028, with a staged ramp-up thereafter.\n\n•     Customer Engagement: First sample magnets have been supplied to potential customers in the United States and the Company is working with HyProMag operations in UK and Germany on increasing the supply of sample magnets responding to customer demand. HyProMag USA is engaging with multiple customers across North America, spanning both smaller customers and OEM’s.\n\n•     Feedstock supply: HyProMag USA is making good progress in establishing strong relationships across a range of feedstock sources and several supply opportunities are being pursued, with tests for quality and recoverability of magnets imminent on some of the feedstock. Feedstock discussions have extended beyond hard disk drives into rotors, MRI machines and actuators, and discussions with several large recyclers are underway. HPMS provides a unique, energy efficient and cost-effective solution for recovering magnets from rotors and other assemblies with embedded magnets, which remains a major competitive advantage for the group.\n\n**About HyProMag USA**\n\nHyProMag USA is developing advanced rare earth magnet recycling and manufacturing operations to establish a secure domestic U.S. supply chain for NdFeB magnets, which are critical components in AI infrastructure, robotics, electric vehicles, wind turbines and advanced electronics. Leveraging the revolutionary HPMS technology developed over 15 years with over US$100 million in R&D investment, HyProMag delivers faster magnet-to-magnet short-loop recycling that uses 88% less energy and reduces carbon emissions by 85% compared to conventional methods. HPMS accepts a wide range of magnet-bearing feedstocks – including end-of-life EV motors, data-center and industrial equipment, consumer electronics, and manufacturing scrap – enabling direct recovery of magnet-grade material without conventional chemical processing. HyProMag is focused on ensuring supply chain security and resilience for critical technologies and economic competitiveness.\n\n**Detailed Design and Project Economics**\n\nThe Texas Hub Class 2 AACE Capital Cost Estimate and Study (the “Detailed Design”) is being carried out by a multidisciplinary team appointed by CoTec and Mkango and led by independent engineering firms PegasusTSI and BBA. The study, which is approximately 38% complete, includes optimization of the operation as well as an updated capital cost profile.  PegasusTSI and BBA have completed a 3D Plant model based on the Class 2 estimate prepared in Q4 2025 ([https://www.youtube.com/watch?v=xNmJF3Hh1Mk](https://www.youtube.com/watch?v=xNmJF3Hh1Mk)).\n\n**Potential Future U.S. Listing**\n\nIn December 2025, HyProMag USA’s owners, CoTec Holdings Corp. (TSXV: CTH; OTCQX: CTHCF) (“CoTec”) and Mkango Resources Ltd. (AIM/TSX-V: MKA) (“Mkango”), announced that they were exploring a potential U.S. listing for HyProMag USA.[\\[4\\]](https://www.investegate.co.uk/announcement/rns/mkango-resources--mka/hypromag-usa-to-establish-early-magnet-finishing/9687774#_ftn4) Since then, the Company has begun engaging prospective advisors and investment banks as part of an ongoing evaluation.\n\n**Ownership**\n\nHyProMag USA LLC is owned 50:50 by CoTec Holdings Corp. (TSXV: CTH; OTCQX: CTHCF) (“CoTec”) and HyProMag Limited. HyProMag Limited is 100% owned by Maginito Limited, which is owned 79.4% by Mkango Resources Ltd. (AIM/TSX-V: MKA)  and 20.6% by CoTec.\n\nFor more information, please visit [www.hypromagusa.com](https://www.hypromagusa.com/)\n\n**About Mkango Resources Ltd.**\n\nMkango is listed on the AIM and the TSX-V Stock Exchanges. Mkango’s corporate strategy is to become a market leader in the production of recycled rare earth magnets, alloys and oxides, through its interest in Maginito Limited, which is owned 79.4 per cent by Mkango and 20.6 per cent by CoTec, and to develop new sustainable sources of neodymium, praseodymium, dysprosium and terbium to supply accelerating demand from electric vehicles, wind turbines and other clean energy technologies.\n\nMaginito holds a 100 per cent interest in HyProMag Limited and a 90 per cent direct and indirect interest (assuming conversion of Maginito’s convertible loan) in HyProMag GmbH, focused on short loop rare earth magnet recycling in the UK and Germany, respectively, and a 100 per cent interest in Mkango Rare Earths UK Ltd (“Mkango UK”), focused on long loop rare earth magnet recycling in the UK via a chemical route.\n\nMaginito and CoTec are also expanding HPMS recycling technology into the United States via the 50/50 owned HyProMag USA joint venture company.\n\nMkango currently owns 100% of the advanced stage Songwe Hill rare earths project in Malawi and the proposed Puławy rare earths separation plant in Poland. Both the Songwe and Puławy projects have been selected as Strategic Projects under the European Union Critical Raw Materials Act. Songwe has also received Development Funding from the U.S. International Development Finance Corporation (DFC), the U.S. Government’s development finance institution, securing US$4.6 million in reimbursable funding for Front End Engineering and Design. Mkango signed a Business Combination Agreement with Crown PropTech Acquisitions to list the Songwe Hill and Puławy rare earths projects on NASDAQ via a SPAC merger under the name Mkango Rare Earths Limited (the “Proposed Business Combination”).\n\n For more information, please visit [www.mkango.ca.](http://www.mkango.ca.)\n\nMarket Abuse Regulation (MAR) Disclosure\n\nThe information contained within this announcement is deemed by Mkango to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR’) which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.\n\nFor further information on Mkango, please contact:\n\nMkango Resources Limited\n\nWilliam Dawes\n\nChief Executive Officer\n\n[will@mkango.ca](mailto:will@mkango.ca)\n\nAlexander Lemon\n\nPresident\n\n[alex@mkango.ca](mailto:alex@mkango.ca)\n\nCanada: +1 403 444 5979\n\n[www.mkango.com](http://www.mkango.com/)\n\n@MkangoResources"}