Highlights
- Mkango Resources and HyProMag achieve first commercial-scale production of recycled neodymium-iron-boron (NdFeB) alloy powder in Birmingham, UK.
- The innovative Hydrogen Processing of Magnet Scrap (HPMS) technology enables low-carbon rare earth recycling with over 28% total rare earth content.
- Company aims to scale production to 350 tonnes/year by 2026.
- Expansion plans in UK, Germany, and the United States to build an alternative rare earth supply chain.
In a landmark moment for rare earth recycling, Mkango Resources Ltd. (AIM/TSX-V: MKA (opens in a new tab)) (Mkango) and its subsidiary HyProMag Ltd. have completed the first production runs from a commercial-scale Hydrogen Processing of Magnet Scrap (HPMS) vessel at Tyseley Energy Park in Birmingham, UK. This facility marks the UK’s only commercial sintered magnet manufacturing plant—a major win for domestic supply chain resilience and clean-tech circularity.
The HPMS technology, developed over two decades by the University of Birmingham’s Magnetic MaterialsGroup (opens in a new tab), enables the extraction of high-grade neodymium-iron-boron(NdFeB) alloy powder from end-of-life magnets. The recycled product contains over 28% total rare earth content (Nd/Pr/Dy/Tb) and offers a significantly lower CO₂ footprint than primary or chemically recycled materials.
By Q3 2025, HyProMag aims to produce 0.5 tonnes per month, scaling to at least 2 tonnes per month by the end of 2025, with a roadmap targeting up to 350 tonnes per year by 2026. Commercial magnet production at scale will begin once the downstream equipment (including sintering furnaces) is commissioned, expected by the end of Q3 2025, assuming the company meets all of its plan milestones.
“This is a major milestone for the UK’s critical mineral ambitions,” said Mkango CEO Will Dawes (opens in a new tab). The company is also developing HPMS facilities in Germany (targeting production by end-2025) and the U.S. (targeting H1 2027 via its JV with CoTec Holdings Corp).
Frankly, Mkango is emerging as a strategic pillar in the West’s drive to build an “ex-China” rare earth supply chain, integrating mining, refining, and magnet recycling at a time when geopolitical risk, climate policy, and industrial security increasingly overlap. Through its HyProMag subsidiary, Mkango now operates the UK’s only commercial rare earth magnet manufacturing facility and is deploying patented HPMS recycling technology across Europe and the U.S.—delivering low-carbon NdFeB alloys and magnets from scrap. Coupled with its fully permitted Songwe Hill mine in Malawi and its EU-backed Pulawy separation plant in Poland, Mkango offers the West a vertically integrated alternative to China’s dominance in rare earths. However, there is work to be done, and several such integrated ventures (or alliances among different firms in the value chain) are necessary for any truly ex-China market to emerge.
Critical Questions for Investors
- Will HyProMag secure sustained long-term offtake partners beyond pilot-scale sample distribution?
- How will the UK plant compete on price and scale with Chinese NdFeB recyclers?
- Will Westen governments continue to move toward a form of industrial policy to support firms such as Mkango?
- Will the technology perform at scale both in processing alloy and in the production of the final end product?
- What is the technological moat around HPMS as other recyclers advance?
- How secure is HyProMag’s access to NdFeB scrap feedstock across regions?
- Can CoTec/Mkango replicate its UK success in the U.S., where permitting and scrap sourcing challenges are looming?
- What is the full margin outlook from magnet sales versus alloy powder sales?
- Can the SPAC merger unlock meaningful value or introduce new risk?
Mkango’s strategy aligns short-loop (mechanical HPMS) and long-loop (chemical) recycling through its stake in Maginito Ltd. ( (opens in a new tab)79.4% Mkango, 20.6% CoTec), with broader plans to list the Songwe Hill (Malawi) and Pulawy (Poland) projects via a SPAC merger on the NASDAQ.
Rare Earth Exchanges (REEx) profiled CoTech yesterday.
Company Profile
Mkango Resources Ltd. is an integrated rare earth company advancing sustainable mining, refining, and recycling across the supply chain. Its flagship project, the Songwe Hill rare earth mine in Malawi (opens in a new tab), is a fully permitted, definitive feasibility stage asset targeting ~5,954 tonnes/year of total rare earth oxides (TREO) in mixed rare earth carbonate, with a projected NPV of $559M and IRR of 31.5%. Downstream, Mkango’s Pulawy Separation Project (opens in a new tab) in Poland—granted European Commission Strategic Project status—aims to produce over 1,000 tonnes/year of Nd/Pr oxides and Dy/Tb oxides from Songwe feedstock. Through its 79.4% ownership of Maginito Ltd., Mkango also controls HyProMag Ltd (opens in a new tab).—the commercialization of patented hydrogen-based recycling of NdFeB magnets developed by the University of Birmingham, the technology cited above. Magnet recycling plants are being commissioned in the UK (discussed today) and Germany (2025), with a U.S. rollout via a joint venture with CoTec Corp. targeted for 2027. Mkango’s strategy uniquely spans primary mining, chemical separation, and low-carbon short- and long-loop recycling. The company is backed by ~$100M in R&D, multiple government grants, and participation in the Minerals Security Partnership, positioning it as a rare earths leader for the global energy transition.
Summarizing the company’s last financials for the three months ending March 2025 (opens in a new tab), Mkango reported a net loss after tax of $2.45 million for Q1 2025, up from $1.03 million in Q1 2024, primarily due to a $1.14 million fair value adjustment related to investor warrants. Operating expenses rose to $1.35 million, reflecting increased audit, salary, and depreciation costs. As of March 31, the Company held $3.03 million in cash. Key milestones included the designation of the Pulawy Separation Plant in Poland as a European Commission Strategic Project and the advancement of rare earth recycling initiatives in the UK, Germany, and the U.S. via its Maginito subsidiary. Commercial magnet production from HyProMag UK is expected to be targeted by mid-2025. Additionally, Mkango expanded its U.S. joint venture, HyProMag USA, with feasibility-confirmed plans for three HPMS vessels and long-loop processing. A planned NASDAQ spinout of Mkango’s mining and separation assets (Songwe Hill and Pulawy) via a SPAC merger remains in progress. Despite quarterly losses, Mkango continues scaling an integrated Mine-Refine-Recycle rare earths platform with broad government and institutional support.
Source: Mkango Resources Ltd. News Release, July 2025
For more, visit www.mkango.ca (opens in a new tab), and for discussions, visit Rare Earth Exchanges Forum (opens in a new tab).
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