Mkango and CoTec Provide Update on Roll-Out Of HyProMag's Rare Earth Magnet Recycling Technology Into the United States
Mkango Resources Ltd. and CoTec Holdings Corp. are making significant strides in the roll-out of HyProMag’s rare earth magnet recycling technology in the United States. The two companies, along with their subsidiary HyProMag Ltd, have commenced planning for a feasibility study for the US operation, which is expected to be completed by mid-2024.
The proposed operating configuration for the US operations involves a modular, hub and spoke model. It includes the deployment of three Hydrogen Processing of Magnet Scrap (HPMS) recycling vessels at the spokes and a central hub comprising rare earth (NdFeB) alloy and magnet manufacturing. The actual results of the US operations may vary depending on various factors such as pricing of rare earth elements, product mix, sales pricing, capacity, and quality of scrap feed material. These key inputs will be further explored and optimized during the completion of the Feasibility Study.
The HyProMag technology, developed at the University of Birmingham, offers a sustainable and low carbon solution for the supply of domestic rare earth magnets. It has major competitive advantages over other rare earth magnet recycling technologies, as it effectively addresses the challenges of liberating magnets from end-of-life scrap streams.
The progress made in the UK and Germany, where the plants are being developed, significantly de-risks the US operations. The Tyseley Energy Park in the UK is expected to commence production of rare earth magnets this year, with funding provided by the UK Research and Innovation “Driving the Electric Revolution” challenge. HyProMag is the primary industrial user and operator of the plant and holds the principal license for the HPMS technology.
The joint venture company, HyProMag US, will be formed by Maginito and CoTec, with each holding a 50% stake. CoTec will be responsible for funding all feasibility and development costs. The formation of this joint venture company marks an exciting step forward in the growth opportunities for Mkango Resources Ltd. and CoTec in the United States.
Julian Treger, CEO of CoTec, expressed satisfaction with the progress and results of the scoping studies. He emphasized the long-term, sustainable, and low carbon solution that HyProMag’s recycling technology offers for the supply of domestic rare earth magnets. Discussions with the US Government, potential customers, and recycling partners have already begun and are ongoing.
Mkango CEO, Will Dawes, shared his excitement about the growth opportunities in the United States. He looks forward to working with CoTec and HyProMag to scale up and roll out the HPMS rare earth magnet recycling technology. Dawes believes that HPMS has the potential to unlock the supply chain for rare earth magnet recycling, and he is thrilled to see this UK-developed, homegrown technology gaining traction internationally.
Mkango Resources Ltd. is focused on developing sustainable primary and secondary sources of rare earth minerals to meet the increasing demand from clean technologies like electric vehicles and wind turbines. Their integrated Mine, Refine, Recycle strategy sets them apart in the rare earths sector. They are currently developing their flagship Songwe Hill rare earths project in Malawi, along with other exploration projects in the country.
CoTec Holdings Corp. is an ESG-focused company investing in innovative technologies that can revolutionize the extraction and processing of metals and minerals. They are committed to supporting the transition to a lower carbon future for the extraction industry. CoTec has made several investments and actively seeks operating opportunities where their technology investments can be deployed.
The progress made by Mkango Resources Ltd., CoTec Holdings Corp., and their subsidiary HyProMag Ltd. in the roll-out of rare earth magnet recycling technology is a significant development in the sustainable supply of domestic rare earth magnets. With their innovative and environmentally friendly approach, these companies are poised to make a positive impact on the rare earths sector and contribute to a greener future.