CoTec Holdings Corp. Subsidiary to Gain from Upcoming US Tariffs on Chinese Magnets

On May 16, 2024, CoTec Holdings Corp. (TSXV:CTH)(OTCQB:CTHCF) acknowledged a significant policy change by the US government set to implement a 25% tariff on Chinese permanent magnets starting 2026. The company holds a major stake in HyProMag USA LLC., which specializes in recycling technology for rare earth elements critical to producing these magnets.

HyProMag USA employs a patented technology, Hydrogen Processing of Magnet Scrap (HPMS), to extract and repurpose NdFeB magnets from used electronics like hard disk drives and EV motors. The company is currently assessing the feasibility of deploying this technology across three potential sites in the USA, with an immediate focus on a facility in Fort Worth, Texas.

According to Julian Treger, CEO of CoTec, the new tariffs will significantly bolster the business model of HyProMag USA. He highlighted that the company's first revenue is expected by 2026, aligning seamlessly with the commencement of the new US tariffs on imported Chinese magnets.