LONDON: Mkango Resources Ltd. has signed an agreement to acquire Heraeus Amloy Technologies GmbH’s rare earth magnet recycling business for €8 million ($9.4 million), the company announced Monday.
The acquisition of Remloy includes a fully commissioned plant in Bitterfeld, Germany, that recycles end-of-life rare earth magnets into neodymium-iron-boron alloy powders for bonded and hot deformed magnet markets. The facility has a total capacity of 500 tonnes of NdFeB alloy per year.
Under the asset purchase agreement, Mkango will pay €5 million ($5.6 million) at closing, expected within the next three months, with the remaining €3 million ($3.5 million) due two years later. The initial payment will be funded from Mkango’s existing cash balance following its £12.5 million ($16.8 million) equity placement that closed April 10, 2026.
No further major development capital expenditure is required at the plant, which is already running production test runs for customer samples. First commercial sales of NdFeB alloy powder are targeted by the end of the year.
The acquisition includes a stockpile of more than 300 tonnes of rare earth magnets, alloys and other raw materials. The assets are not yet revenue-generating as the facility remains in its start-up phase.
William Dawes, CEO of Mkango, said the acquisition complements the company’s existing HyProMag short-loop recycling process for sintered magnets. On April 28, HyProMag GmbH officially opened its production facility in Pforzheim, Germany.
“Mkango will have two rare earth plants in Germany with the capability to provide customers with a sustainable supply of rare earth products for the sintered, bonded and hot deformed magnet markets,” Dawes said.
David Bender, head of Remloy, said the team would focus on bringing products to customers and scaling commercial activities.
The transaction is expected to close in summer 2026, subject to customary closing conditions and required regulatory approvals. Mkango trades on the AIM and TSX-V under the symbol MKA.
