Rare Earth Exchanges

HyProMag USA Rare Earth Magnet Recycling Project

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Highlights

  • HyProMag USA initiates EPCM selection for rare earth magnet recycling project with target to generate initial revenue by Q1 2027.
  • Utilizes patented Hydrogen Processing of Magnet Scrap (HPMS) technology to recycle neodymium iron boron (NdFeB) magnets with reduced carbon footprint.
  • Supports US strategic initiatives to develop secure, sustainable critical mineral supply chains and reduce international supply chain dependencies.

A holding of Mkango Resources Ltd (opens in a new tab)., HyProMag USA (opens in a new tab) has commenced a “Request for Proposal” process to select an Engineering, Procurement, and Construction Management (EPCM) provider for its rare earth magnet recycling and manufacturing project in the U.S.

Project Background

The company notes that a positive feasibility study results were published on November 25, 2024, demonstrating the project’s robust economics.

The detailed engineering design phase will focus on refining costs, enhancing design, and supporting site selection, expected to complete in H1 2025. The project aims to generate initial revenue by Q1 2027.

Ownership Structure

HyProMag USA is 50/50 owned by CoTec Holdings Corp. and Maginito Limited.  Maginito Limited is primarily owned by Mkango Resources Ltd. (79.4%) and CoTec (20.6%).

Technology and Environmental Focus

The project will utilize HyProMag’s patented Hydrogen Processing of Magnet Scrap (HPMS) technology.  HPMS enables recycling of neodymium iron boron (NdFeB) magnets from end-of-life scrap into recycled magnets with a reduced carbon footprint.

What’s the Strategic Importance?

The project aligns with U.S. initiatives to develop secure and sustainable critical mineral supply chains. Also, it supports the domestic ecosystem for rare earth magnet recycling to reduce reliance on international supply chains.

So, what’s next?

The company in its press release reports site permitting will begin after final site selection.  A mid-2025 decision will determine whether to proceed with procurement and construction.

Rare Earth Exchanges notes from an environmental and strategic relevance standpoint, the focus on recycling NdFeB magnets addresses a significant gap in the U.S. rare earth supply chain.  Also reduced carbon footprint aligns with ESG priorities and supports the transition to clean energy technologies, including electric vehicles and wind turbines.

Other factors include advanced technology adoption, considering the HPMS process, developed at the University of Birmingham, offers competitive advantages over chemical recycling methods, particularly in liberating magnets from end-of-life streams.

The project involves global collaboration as HyProMag is expanding globally, with projects in the U.K., Germany, Japan, and now the U.S., highlighting the scalability and international demand for its recycling technology.

The hope is of course that the project has the potential to catalyze a domestic supply chain for critical materials, reducing dependency on foreign sources for rare earths.

What are some limitations and core assumptions?

First we look at project timelines.  The target to generate initial revenue by Q1 2027 depends on timely completion of site selection, permitting, and funding.

The securing of U.S. government funding and private financing is crucial to the project’s progress and success. Delays in funding could impact milestones. The project assumes sustained demand for recycled rare earth magnets and favorable market conditions, especially for sectors like EVs and wind turbines.

While the HPMS process has been proven in controlled environments, its scalability and efficiency at a commercial level remain to be fully demonstrated. Competing recycling technologies or geopolitical factors may affect market positioning and resource access.

Conclusion

The HyProMag USA project is a pivotal step toward establishing a domestic rare earth magnet recycling ecosystem. By leveraging innovative recycling technologies like HPMS and aligning with critical mineral strategies, it holds promise for economic and environmental impact. However, its success hinges on funding acquisition, timely execution, and market conditions.

About HypoMag

HyProMag was founded in 2018 by the late Professor Emeritus Rex Harris, former Head of The Magnetic Materials Group (“MMG”) within the School of Metallurgy and Materials at the University of Birmingham; Professor Allan Walton, current Head of the MMG; and two Honorary Fellows, Dr John Speight and Mr David Kennedy, leading world experts in the field of rare earth magnetic materials, alloys and hydrogen technology, with significant industry experience. Following a transaction completed in August 2023, HyProMag is 100% owned by Maginito Limited (opens in a new tab), a 90% owned subsidiary of UK and Canada listed, Mkango Resources Ltd (opens in a new tab) (TSXV/AIM:MKA). Our aim is to develop a full recycling supply chain for rare earth magnets based upon neodymium iron boron (NdFeB). HyProMag has licensed the patented technology called HPMS (Hydrogen Processing of Magnet Scrap) developed in the Magnetic Materials Group (MMG) at the University of Birmingham. This patent and related Intellectual Property is at the core of HyProMag. HPMS is a hydrogen based process which is used to extract NdFeB magnets from electrical products such as hard disk drives. The extracted NdFeB powder is in the form of an alloy which can be re-processed into different forms which can be sold back into the supply chain for rare earth magnets.

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