CoTec and Mkango Announce Engineering Firms for Feasibility Study of US Magnet Recycling Facility

CoTec Holdings Corp. and Mkango Resources Ltd. have engaged Canada's BBA USA Inc. and US-based PegasusTSI Inc. to conduct a bankable feasibility study for the development of rare earth magnet recycling facilities in the United States, specifically under the subsidiary HyProMag USA, LLC. The study, slated for completion in the second half of 2024, will focus on creating a domestic supply chain for neodymium/iron/boron (NdFeB) magnets, vital for advancing secure, low carbon, and traceable rare-earth initiatives.

CoTec CEO Julian Treger emphasized the study as a crucial step towards establishing commercial-scale magnet recycling in the U.S., aligning with the Minerals Security Partnership's goals for sustainable supply chains. The effort aims to capitalize on HyProMag's existing expertise and infrastructure in the UK and Germany, promising collaboration with various stakeholders for the project's development.

Mkango CEO Will Dawes sees this as an opportunity to leverage HyProMag's advantageous position in the rare earth magnet recycling sector, highlighting the project's potential to meet growing demand with environmentally friendly solutions. The venture seeks to establish a cost-effective, sustainable enterprise powered by HyProMag's patented recycling technology, HPMS.

The feasibility study will explore a model incorporating three HPMS vessels and a manufacturing hub in Texas, aiming for detailed engineering and site preparation by end-2024. This initiative marks a significant move towards realizing revenue by 2025 or 2026, with environmental and permitting studies supported by Weston Solutions, Inc. The decision to proceed with construction will be made post-study, with CoTec funding the development costs.