DALLAS-FORT WORTH: HyProMag USA, LLC, a joint venture between CoTec Holdings Corp. (TSXV: CTH; OTCQB: CTHCF) and Mkango Resources Ltd. (AIM/TSX-V: MKA), has received a letter of interest from the U.S. Export-Import Bank (EXIM) for up to $92 million in financing to support its first integrated rare earth recycling and magnet manufacturing facility in Texas.
The funding, with a potential 10-year repayment term, falls under EXIM’s “Make More in America” (MMIA) initiative, which aims to bolster domestic production in critical sectors. The Dallas-Fort Worth facility will focus on producing permanent NdFeB magnets, key components for electric vehicles, wind turbines and defense technologies.
“We believe this project could significantly advance U.S. permanent magnet independence,” said Julian Treger, CEO of CoTec. “HyProMag USA’s rapid deployment potential sets it apart from competitors.”
Will Dawes, CEO of Mkango, added that the facility will create a “major new domestic hub” for rare earth recycling and magnet production, supporting North American supply chains.
The project aligns with President Joe Biden’s March 2025 executive order to fast-track permits and funding for critical mineral production. HyProMag USA’s proprietary Hydrogen Processing of Magnet Scrap (HPMS) technology, developed at the University of Birmingham, offers a more efficient recycling method compared to traditional chemical processes.
Project Details
- Location: Dallas-Fort Worth, Texas
- Annual Output: 750 metric tons of recycled NdFeB magnets, plus 807 metric tons of co-products
- Jobs Created: 90-100 skilled positions
- Carbon Footprint: 2.35 kg CO2 per kg of NdFeB (based on a 2025 ISO-compliant study)
HyProMag USA is equally owned by CoTec and HyProMag Ltd., a subsidiary of Mkango’s majority-held Maginito Ltd. The facility is expected to begin production within five years of commissioning.