Building a secure domestic magnet supply
A faster, lower-risk alternative to conventional rare earth production while building long-term supply security for critical industries
Overview
About the project
HyProMag USA is developing low-cost, low-carbon and sustainable advanced rare earth magnet recycling and manufacturing operations underpinned by HyProMag Limited’s patented Hydrogen Processing of Magnet Scrap (HPMS) technology. HyProMag has sublicensed the HPMS technology to HyProMag USA, which is 50:50 per cent owned by CoTec and Maginito. CoTec’s effective ownership is 60.3% in HyProMag USA; 50% through the US JV with Maginito Ltd., and CoTec’s 20.3% equity ownership in Maginito.
HyProMag USA is targeting 10% of U.S domestic demand for NdFeB magnets within five years of commissioning through modular design which can be rapidly replicated and accelerated to facilities in eastern and western United States.
Key Facts:
Headquarters
Dallas-Fort Worth, TX
Ownership
CoTec Holdings (60.3%) Mkango Resources
Status
Development Stage
Target Production
H2-2027
Strengthening U.S. Supply Chains
The HyProMag USA project plays a crucial role in strengthening domestic manufacturing capability and supply chain security.
01
Reduces reliance on imported rare earth materials
02
Supports national priorities across AI and energy transition technologies
03
Creates a domestic circular supply loop for magnet materials
04
Enables long-term, traceable, secure sourcing for U.S. industrial ecosystems
A Hub-and-spoke model
HyProMag USA operates a hub-and-spoke production model centered around a large-scale magnet recycling and manufacturing facility in Dallas - Fort Worth, Texas. The central hub provides full magnet production capability using recovered materials, supporting long-term operations. This is supported by two pre-processing spoke sites in the eastern and western United States. This enables efficient feedstock preparation, reduced logistics costs, and flexible, scalable growth while maintaining centralized production efficiency.
Advancing toward scaled commercial production in the US
Engineering and deployment activities are underway to expand HyProMag USA’s large-scale magnet recycling and manufacturing operations as demand grows.
Production Progress
- A 128,000 sq. ft. production facility in Northlake, Texas, supporting centralized recycling and operations with 25-year lease executed
- Detailed engineering, plant design, and procurement activities are underway to support timely commissioning
- Expansion studies for short-loop and long-loop hydromet completed in December 2025, while pre-feasibility commenced in January 2026
- Exploration of neodymium (Nd) metallization to further strengthen capabilities
- Targeted expansion to reach 4,656 metric tonnes per annum by 2029
Facility Highlights
HyProMag USA Facility Flythrough Video
01
Three vessels of HPMS (Hydrogen Processing of Magnetic Scrap)
02
Grain Boundary Diffusion for high-coercivity magnets (>20 kOe)
03
Full suite magnet recycling and production with a 40-year operating life
04
Creating 90–100 skilled manufacturing jobs to support industrial growth
Performance driven by efficiency
Our process is designed to improve economics at every stage. Lower input costs and fewer processing steps result in higher margins, reduced risk, and greater operational efficiency.
| Metric | Current Market Prices | Forecast Market Prices |
|---|---|---|
| Post-Tax NPV | $416M | $797M |
| Real IRR | 26% | 37% |
| Payback Period | 3.4 years | 2.5 years |
| Profitability Index | 2.5 | 5.5 |
| Initial Capital | $152M | — |
| AISC | $22.3/kg vs. $61.7/kg Market | — |
Source: Based on Class 2 AACE capital cost estimate and detailed engineering design, December 2026, updated June 2026 (Texas Hub, Plant 1)
Feasibility Study
An independent feasibility study completed in November 2024 confirmed the strong technical and economic potential of the HyProMag USA project. Expansion concept studies announced on January 12, 2026, outlining a pathway to triple production capacity, followed by updated project economics in June 2026. Conducted by BBA and Pegasus TSI, the study evaluates a state-of-the-art rare earth magnet recycling and manufacturing operation in the United States, demonstrating robust project economics, scalable production capacity, and long-term operational viability.
This hub-and-spoke model enables efficient collection, processing, and domestic supply of recycled magnet material
- Annual production of 1,048 metric tpa NdFeB magnets and 478 metric tpa of co-products
- Total payable capacity of 1,526 tonnes of NdFeB material/year over 40-year operating life
The feasibility study (updated June 2026) highlights strong financial performance and cost competitiveness
- US$416M Net Present Value (NPV) and 26% Internal Rate of Return (IRR) at current market prices
- US$797M post-tax NPV and 37% IRR per adams forecast measures
- 65% EBITDA margin at current market prices
- ~ 3.4 years payback period at current prices at profitability index (PI) of 2.5; at forecast market prices payback is achieved in 2.5 years at a PI of 5.5
- US$22.3 per kg low All-in Sustaining Cost (AISC) of NdFeB product, significantly below market prices with significant scope of price recovery
- Initial capital estimate of US$152M based on a Class 2 AACE estimate (June 2026)
- Weighted average NdFeB pricing of US$61.7/kg at current market prices and US$105/kg under forecast pricing assumptions