HyProMag: Building a Magnet-to-Magnet Circular Economy

Highlights

• Mkango Resources transforms into a vertically integrated rare earth enterprise.
• Focuses on innovative magnet recycling through HyProMag.
• Developing a global expansion strategy across the UK, Germany, USA, and Japan.
• Utilizes advanced Hydrogen Processing of Magnet Scrap (HPMS) technology.
• Aims to create a closed-loop rare earth magnet ecosystem.
• Has potential to become a key ex-China rare earth magnet supplier.

---

Mkango Resources has repositioned itself as a vertically integrated rare earth enterprise—spanning mining, refining, and now, short-loop rare earth magnet recycling and manufacturing via its majority-owned HyProMag subsidiary, based on the latest corporate presentation.

At the heart of this strategy is the Hydrogen Processing of Magnet Scrap (HPMS) technology, developed at the University of Birmingham and exclusively licensed to HyProMag. This process separates embedded NdFeB magnets from end-of-life (EoL) products like hard drives, EV motors, and speakers—delivering recycled magnets with up to 95% less CO₂ emissions compared to conventional mining-to-magnet pathways.

Global Expansion Timeline

Mkango is executing an aggressive rollout across three continents:

• UK (Tyseley): First commercial production began July 2025; capacity targets of 100–350 tpa of recycled NdFeB.
• Germany: Replicating the Tyseley model with funding support; first production by end-2025.
• USA (Texas hub + spoke model): 1,000 tpa operation by 2027 with projected NPV of $503M and 31% IRR at forecast prices. Backed by CoTec (Canada investor) and recognized by the Minerals Security Partnership (MSP).
• Japan: In collaboration with Envipro, early-stage trials and marketing are underway.

Mkango’s long-loop recycling R&D—complementing short-loop magnet reuse with chemical rare earth recovery—is being piloted in the UK.

Upstream Strategy: Nasdaq Spinout

Mkango plans to list its Songwe Hill mine (Malawi) and Pulawy separation plant (Poland) under a new Nasdaq entity, Mkango Rare Earths Ltd (MKAR). This move allows Mkango to focus on downstream recycling and magnet production while retaining strategic upstream exposure. Songwe holds European Commission Strategic Project status and projects production of ~5,954 tpa TREO, with heavy rare earth output (Dy/Tb) for magnet durability.

What’s Clear

• First-mover advantage (or part of a batch of first movers) in rare earth magnet recycling tech
• Backed by government partnerships (UK DER, MSP)
• Demonstrated scale-up pathway from lab to commercial output
• Clear revenue and margin potential at scale

Critical Questions Investors Should Ask

1. Revenue visibility: Are offtake agreements secured for recycled magnets or alloys?
2. Feedstock reliability: Can they secure sufficient EoL magnet scrap to support scale?
3. IP protection: How defensible is the HPMS tech against new entrants?
4. Capital intensity: What are funding plans beyond current rollout—especially in the U.S.?

Bottom Line

Mkango, through HyProMag, is building one of the world’s most advanced closed-loop rare earth magnet ecosystems. If it delivers on production, feedstock, and offtake, it could emerge as a keystone player in ex-China rare earth magnet supply.