HyProMag USA Plans Rare Earth Magnet Recycling Facility in the U.S.

HyProMag USA, a joint venture between CoTec Holdings Corp. and Mkango Resources Ltd., has announced plans to establish a rare earth magnet recycling and manufacturing facility in the United States. This facility is set to use a pioneering hydrogen processing technology developed by the University of Birmingham’s Magnetic Materials Group. The new plant will focus on recycling neodymium iron boron (NdFeB) magnets, a critical component in electric vehicles (EVs), wind turbines, and various electronic devices.

Revolutionary Hydrogen Processing Technology for Sustainable Magnet Production
HyProMag’s approach relies on the patented hydrogen processing technology, which recovers NdFeB permanent magnets from end-of-life electronics and equipment. Unlike traditional chemical methods, this process demagnetizes the magnets and transforms them into a metallized alloy powder that can be remanufactured into new, high-performance magnets. This closed-loop system offers a significant reduction in carbon emissions, making it an eco-friendly alternative to traditional mining and magnet production methods. The technology’s competitive edge is its lower environmental impact and higher material efficiency.

Strategic Location and U.S. Supply Chain Security
The planned site for the new facility will be located in the Dallas-Fort Worth area, Texas, selected for its central location in the U.S., extensive electronic waste recycling infrastructure, and strong connectivity to railroads and highways. The U.S. government has shown strong interest in domestic magnet production due to the strategic importance of NdFeB magnets in industries such as defense, aerospace, robotics, medical devices, and renewable energy. The facility will source materials primarily from U.S.-based scrap streams, helping secure a stable domestic supply of critical magnets and reducing dependence on foreign imports, particularly from geopolitical competitors like China.

Feasibility Study Confirms Project Viability and Economic Upside
The results of the independent feasibility study are promising. The study shows that the facility could produce up to 750 metric tons of sintered NdFeB magnets and 291 metric tons of associated coproducts annually. With an upfront capital cost of $125 million, the project is expected to generate substantial revenue, driven by a robust demand for rare earth magnets in the energy transition and technology sectors. The study also forecasts significant upside potential based on the expected recovery of rare earth prices in the coming years. A subsequent expansion phase could add another $7 million in capital investment.

Collaborations and Funding for the U.S. Magnet Market
HyProMag USA is working closely with U.S. government agencies to secure funding and financial incentives, with the backing of the U.S. Minerals Security Partnership. This partnership aims to diversify and strengthen the U.S. supply chain for critical minerals, ensuring the nation’s long-term access to rare earth materials essential for its industrial and energy needs. In addition, the project is exploring strategic partnerships with U.S. companies across the defense, aerospace, and clean energy sectors to bolster its position in the global magnet market.

Job Creation and Economic Impact
The HyProMag USA project is expected to create around 90 jobs in the Dallas-Fort Worth area, contributing to local economic growth. The facility’s operations will include magnet recycling, metallization, and manufacturing, providing employment opportunities in the high-tech manufacturing and clean energy sectors. Furthermore, the project aims to strengthen the U.S. domestic manufacturing ecosystem, particularly for the electric vehicle and renewable energy industries, which rely heavily on high-quality NdFeB magnets.

Project Timeline and Future Expansion
HyProMag USA is now moving to the engineering design phase, with plans to complete site permitting by the end of 2025 and begin operations in 2027. The facility will be the first of its kind in the U.S. to focus on rare earth magnet recycling, with the potential for future expansions as demand grows. The project will also include a “hub and spoke” operational model, with the central hub in Dallas-Fort Worth and preprocessing sites in Nevada and South Carolina.