Highlights

• HyProMag USA finalizes a 128,000-sq-ft lease in Dallas-Fort Worth to establish the first commercially-scaled rare earth magnet recycling facility in the U.S.
• The facility targets 1,557 tpa NdFeB output by 2032 using patented HPMS technology.
• Partnership with Intelligent Lifecycle Solutions secures feedstock supply through a hub-and-spoke recycling network.
• Offers a low-carbon alternative (2.35 kg CO₂/kg) to the Chinese-dominated magnet supply for the auto, defense, and industrial sectors.
• Critical investor concerns remain around:
  • Undisclosed CapEx
  • Missing offtake agreements with U.S. OEMs
  • Permitting timeline risks
  • Scale-up validation
• These factors affect CoTec (CTHCF) and Mkango (MKA) investment viability.

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HyProMag USA’s announcement of a finalized long-term lease at the Ironhead Commerce Center in Dallas–Fort Worth marks a concrete step in the long-discussed effort to rebuild domestic rare earth magnet manufacturing. The 128,000-sq-ft facility will anchor a hub-and-spoke recycling network tied to pre-processing sites in Nevada and South Carolina. This is not speculative paper shuffling—the lease signals real capital commitment and anchoring infrastructure, something the U.S. magnet sector has lacked for decades.

Also, HyProMag USA has established and expanded its feedstock-supply partnership with Intelligent Lifecycle Solutions (opens in a new tab) (ILS), a global electronics recycling company, which has commenced stockpiling magnet-bearing materials to support commissioning of HyProMag's U.S. operations.

The project will deploy patented Hydrogen Processing of Magnet Scrap (HPMS) technology, enabling short-loop recycling of NdFeB magnets from end-of-life electronics. HyProMag USA targets commissioning by mid-2027 and forecasts 1,557 tpa NdFeB output within five years—material enough to matter for U.S. auto, defense, and industrial OEMs who currently depend on Chinese supply.

Signals Investors Should View Positively

Several elements of the release align with REEx’s supply-chain research:

• Feedstock security: ILS has begun stockpiling magnet-bearing materials—an essential but often overlooked risk factor in recycling ventures.
• Low-carbon profile: An ISO-compliant footprint of 2.35 kg CO₂/kg NdFeB is credible and materially lower than mined material.
• Modular scaling: The hub-and-spoke network is replicable and aligns with U.S. industrial policy priorities for distributed critical-mineral capacity.

If executed, HyProMag USA becomes one of the first commercially scaled facilities of its kind in the U.S according to its’ press release.

Critical Investor Questions Still Unanswered

Despite real progress, investors should flag several omissions:

1. Total CapEx not disclosed. The feasibility study indicated strong economics, but updated cost estimates amid U.S. construction inflation are absent.
2. Permitting timelines remain vague. Mid-2027 commissioning assumes no delays—optimistic for Texas environmental, zoning, and utility approvals.
3. Offtake clarity missing. No named U.S. OEMs or magnet buyers, leaving revenue visibility uncertain.
4. HPMS vessel scale-up risk. Three-vessel engineering expansion is noted, but no update on performance validation at U.S. scale.

CoTec (CTH / CTHCF) and Mkango (MKA) Stock View

Fundamentals: CoTec (opens in a new tab) gains optionality from a technology-driven, margin-accretive recycling platform. Mkango benefits indirectly through HyProMag Limited. Both remain early-stage, pre-revenue stories, but with increasing strategic relevance.

Technical snapshot: CTHCF continues to trade in a broad consolidation band with declining volume—investors await definitive financing. MKA remains thinly traded; volatility will likely increase as U.S. reshoring narratives intensify.

See CoTech profile via Rare Earth Exchanges™.

Summary

This milestone is real, material, and directionally positive for U.S. magnet independence. But execution, financing, and offtake remain the true tests. Investors should monitor CapEx updates, OEM commitments, and permitting progress as leading indicators of viability.

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