Through its ownership of Maginito Limited (www.maginito.com), Mkango is also developing green technology opportunities in the rare earths supply chain, encompassing neodymium (NdFeB) magnet recycling as well as innovative rare earth alloy, magnet and separation technologies. Maginito holds a 100% interest in UK rare earth (NdFeB) magnet recycler, HyProMag Limited (www.hypromag.com).

HyProMag - Short Loop Rare Earth Magnet Recycling

HyProMag was founded in 2018 by the late Professor Emeritus Rex Harris, former Head of The Magnetic Materials Group ("MMG") within the School of Metallurgy and Materials at the University of Birmingham; Professor Allan Walton, current Head of the MMG; and two Honorary Fellows, Dr John Speight and Mr David Kennedy, leading world experts in the field of rare earth magnetic materials, alloys and hydrogen technology, with significant industry experience.

Following a transaction completed in August 2023, HyProMag is 100% owned by Maginito Limited, a 90% owned subsidiary of UK and Canada listed, Mkango Resources Ltd (TSXV/AIM:MKA). The core technology being commercialised by HyProMag is the highly energy efficient, patented Hydrogen Processing of Magnet Scrap ("HPMS") technology to extract and demagnetise NdFeB (neodymium iron boron) alloy powders from magnets embedded in scrap and redundant equipment.

Our aim is to develop a full recycling supply chain for rare earth magnets based upon neodymium iron boron (NdFeB). HyProMag has licensed the patented HPMS technology developed in the Magnetic Materials Group (MMG) at the University of Birmingham. This patent and related Intellectual Property is at the core of HyProMag. HPMS is a hydrogen-based process which is used to extract NdFeB magnets from electrical products such as hard disk drives. The extracted NdFeB powder is in the form of an alloy which can be re-processed into different forms which can be sold back into the supply chain, or utilised directly in the manufacture of new NdFeB magnets, of a variety of commercial grades.

HPMS is a key enabler for recycling of rare earth magnets in electronics, electric vehicles, robotics, wind turbines and other applications, with major competitive advantages in the rare earth magnet recycling sector, underpinned by approximately US$100m of R&D expenditure at the University of Birmingham and with associated project partners. This is coupled with the ability to manufacture rare earth alloys and magnets with significantly reduced carbon footprint. HyProMag is establishing short loop recycling facilities for NdFeB magnets at Tyseley Energy Park in Birmingham, UK and other locations using the patented HPMS process to provide a sustainable solution for the supply of NdFeB magnets and alloys for a wide range of markets including, for example, automotive and electronics. Short loop magnet recycling is expected to have a significant environmental benefit, requiring an estimated 88% less energy versus primary mining to separation to metal alloy to magnet production. The plant at Tyseley Energy Park is being developed together with the University of Birmingham, with a minimum capacity of 100tpa NdFeB. This £4.3 million project is being funded by Driving the Electric Revolution, an Industrial Strategy Challenge Fund challenge delivered by UK Research and Innovation ("UKRI"). The focus of the project is to take the HPMS technology to a greater scale and efficiency with revolutionary new design of processing equipment and extensive automation of processing methods for inert atmosphere powder handling and pressing. 

HyProMag is the primary industrial user and operator of the plant. First production is targeted for H2 2024, which follows successful piloting at the University of Birmingham in 2022 as featured on BBC Midlands News: Solving a sticky problem. Recycling superstrong magnets! 

In November 2021, HyProMag established an 80%-owned subsidiary in Germany, HyProMag GmbH, to roll out commercialisation of HPMS technology into Germany and Europe. HyProMag GmbH is 20% owned (10% following conversion of the HyProMag GmbH convertible loan) by Professor Carlo Burkhardt of Pforzheim University, co-ordinator of the €14m SusMagPro and €13m REEsilience EU funded recycling projects, with approximately 40 partners across the European supply chain. HyProMag GmbH is developing a similar sized plant to that at Tyseley Energy Park. Initial capacity is expected to be a minimum of 100tpa NdFeB, comprising recycled rare earth sintered magnets and alloys and will be the first in Germany using the patented HPMS process, with first production targeted for 2025.

In October 2023, HyProMag's HPMS technology was identified as one of only 17 key global projects by the Minerals Security Partnership (MSP), a collaboration of 14 countries and the EU, aiming to catalyse public and private investment in responsible critical minerals supply chains globally.

In January 2024, CoTec and Maginito Limited announced the formation of a 50/50 joint venture entity which will roll out HyProMag's HPMS recycling technology into the United States. The JV company, named HyProMag USA, LLC, plans to develop a low cost, low carbon, sustainable rare earth magnet recycling and production business underpinned by HPMS. HyProMag Ltd has sublicensed the HPMS technology to HyProMag USA. Revenue from the Joint Venture is targeted for 2025/2026.

HyProMag USA is currently focused on completing a bankable feasibility study, based on a hub and spoke model using three HPMS vessels and one magnet manufacturing hub which will based in Texas. The Feasibility Study will include the completion of detailed engineering designs, as well as permitting and potential site acquisition by the end of 2024, in line with the initial project schedule, which targets initial revenue in 2025/2026. Environment and permitting studies will be supported by US based Weston Solutions, Inc.

Following completion of the Feasibility Study, CoTec and Mkango will make a joint decision as to whether HyProMag USA will proceed with the construction of the US Project. CoTec is responsible for funding the Feasibility Study and the project development costs. Funding provided by CoTec would be in the form of shareholder loans to HyProMag USA.

In parallel, HyProMag USA has also started working on securing US Government funding and strategic partnerships for feed supply and recycled NdFeB magnet offtake.