HyProMag USA, a joint venture between CoTec Holdings Corp. and Mkango Resources Ltd., will establish a rare earth magnet recycling and manufacturing facility in the U.S. This plant will use pioneering hydrogen processing technology developed by the University of Birmingham’s Magnetic Materials Group. The facility will recycle neodymium iron boron (NdFeB) magnets, which are essential for electric vehicles (EVs), wind turbines, and various electronic devices.
Revolutionary Hydrogen Processing Technology
HyProMag’s approach uses patented hydrogen processing technology to recover NdFeB magnets from end-of-life electronics and equipment. This method demagnetizes the magnets and turns them into a metallized alloy powder, which can be remade into new, high-performance magnets. This process reduces carbon emissions and provides a more eco-friendly alternative to traditional mining and magnet production. It also offers higher material efficiency and a smaller environmental footprint.
Strategic Location and U.S. Supply Chain Security
The facility will be located in the Dallas-Fort Worth area, Texas. This site was chosen for its central location, strong electronic waste recycling infrastructure, and easy access to railroads and highways. The U.S. government has shown interest in producing domestic magnets due to the strategic importance of NdFeB magnets in defense, aerospace, robotics, medical devices, and renewable energy. The facility will source materials from U.S.-based scrap streams, reducing dependence on foreign imports, especially from countries like China.
Feasibility Study Confirms Project Viability
An independent feasibility study confirms the project’s viability. The study predicts the facility will produce up to 750 metric tons of sintered NdFeB magnets and 291 metric tons of coproducts annually. With a $125 million capital investment, the facility could generate significant revenue due to strong demand in the energy transition and technology sectors. The study also highlights potential growth, forecasting a rise in rare earth prices, which could increase profits. A future expansion phase may require another $7 million in capital investment.
Collaborations and Funding for the U.S. Magnet Market
HyProMag USA is working with U.S. government agencies to secure funding and financial incentives. The U.S. Minerals Security Partnership is backing this initiative to diversify and strengthen the U.S. supply chain for critical minerals. The project is also exploring partnerships with U.S. companies in the defense, aerospace, and clean energy sectors to solidify its position in the global magnet market.
Job Creation and Economic Impact
The project is expected to create around 90 jobs in the Dallas-Fort Worth area. The facility will provide employment in magnet recycling, metallization, and manufacturing, contributing to local economic growth. It will also strengthen the U.S. domestic manufacturing ecosystem, especially in the electric vehicle and renewable energy sectors that rely on NdFeB magnets.
Project Timeline and Future Expansion
HyProMag USA is now in the engineering design phase. It plans to complete site permitting by the end of 2025 and begin operations in 2027. This facility will be the first of its kind in the U.S. to focus on rare earth magnet recycling. The project also has expansion potential as demand increases. The model includes a central hub in Dallas-Fort Worth, with preprocessing sites in Nevada and South Carolina.
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