CoTec Holdings Corp. and Mkango Resources Ltd. have announced a 50:50 joint venture to roll out HyProMag’s rare earth magnet recycling technology in the US. HyProMag is a subsidiary of Maginito, which is owned by Mkango and CoTec.
The joint venture, HyProMag US, will use HyProMag’s Hydrogen Processing of Magnet Scrap (HPMS) technology to recover rare earths from end-of-life products and manufacture new magnets. The technology is expected to reduce waste, lower carbon footprint and enhance the security of rare earth supply chains.
The joint venture will conduct a feasibility study for the deployment of three HPMS vessels and one magnet manufacturing facility in the US, which is expected to be completed in 2024. CoTec will fund the initial operations and the development costs of the project, which are estimated to be between £30 million and £50 million. The joint venture will also seek US government funding for the project.
The CEOs of CoTec and Mkango expressed their excitement about the opportunity and the potential of the technology in the US market. They also stated their commitment to work with local, state and federal stakeholders to complete the feasibility study.
HyProMag is already commercialising its technology in the UK, Germany and United States, with first production expected in the UK in 2023 and in Germany in 2024. Revenue from the US joint venture is targeted for 2025/2026.