Northlake Texas Facility targets approximately 1,526 metric tons of annual production and 100 direct jobs
Milestone follows secured power capacity and positive expansion study as Company advances domestic rareearth magnet manufacturing
Dallas-Fort Worth, Texas, November 9, 2026 – HyProMag USA LLC (“HyProMag USA” or the “Company”) is pleased to announce the delivery of the first major process equipment to its rare earth magnet recycling and manufacturing facility in Northlake, Texas (the “Northlake Texas Facility” or the “Project”), marking an important milestone as the Project advances toward financing, commissioning and operations.
The arrival of the equipment reflects continued progress in detailed engineering and procurement as the Company develops a secure, sustainable and domestic source of recycled rare earth permanent magnets in the United States. In December 2025, the Company secured a long-term lease agreement for the Northlake Texas Facility, located at Ironhead Commerce Center, Building 1, Dallas-Fort Worth, Denton County, Texas. The Project site is strategically located near critical infrastructure, including the BNSF intermodal rail link and Alliance Airport.
The Northlake Texas Facility is expected to become one of the first commercial-scale integrated rare earth magnet recycling and magnet manufacturing operations in the United States. Project development continues to advance, with electrical power capacity secured through Oncor Electric Delivery Company LLC, permitting progressing with Weston Solutions, Inc., and contractor selection underway. The Company is targeting initial magnet cutting and finishing operations in the first half of 2027, followed by commissioning of Phase 1 integrated recycling and manufacturing operations in mid-2028.
The milestone follows the successful completion of the Expansion Pre-Feasibility Study (“Expansion PFS”) as announced on October 26, 2026, which confirmed the potential to significantly increase HyProMag USA’s production capacity while maintaining robust project economics. The Expansion PFS highlighted the opportunity to establish one of the largest rare earth magnet recycling and manufacturing platforms in the United States, targeting approximately 4,192 metric tons per year of NdFeB magnet production and approximately 6,000 metric tons of total salable materials annually by 2034 across four plants.
The Northlake Texas Facility is expected to create approximately 100 direct jobs and play an important role in supporting the development of a secure, resilient and sustainable domestic rare earth magnet supply chain. By recovering valuable magnetic materials from end-of-life products and manufacturing scrap, HyProMag USA aims to transform waste streams into a domestic resource for new magnet production, reducing reliance on imported rare earth materials and supporting U.S. manufacturing.
Julian Treger, CEO of CoTec, commented: “The delivery of the first process equipment to the Northlake Texas Facility marks an important milestone for HyProMag USA as we advance toward commercial operations. The Project is expected to create around 100 direct jobs and support workforce training and skills development, helping build the skilled workforce required for advanced manufacturing in the United States. By establishing a domestic source of recycled rare earth magnets, HyProMag USA will strengthen U.S. manufacturing capacity and contribute to a more secure and resilient rare earth magnet supply chain.”
About HyProMag USA
HyProMag USA is developing advanced rare earth magnet recycling and manufacturing operations to establish a secure domestic U.S. supply chain for NdFeB magnets, essential components for AI infrastructure, medical systems, robotics, electric vehicles, and advanced electronics. Leveraging the revolutionary Hydrogen Processing of Magnet Scrap (“HPMS”) technology, developed over 15 years with over US$100 million in R&D investment, HyProMag USA is designed to deliver faster magnet-to-magnet short-loop recycling that uses 88% less energy and reduces carbon emissions by 85% compared to conventional methods. HPMS accepts a wide range of magnet-bearing feedstocks – including end-of-life EV motors, data-center and industrial equipment, consumer electronics, and manufacturing scrap – enabling recovery of magnet-grade material without chemical processing.
Ownership
HyProMag USA LLC is owned 50:50 by CoTec Holdings Corp. (TSXV: CTH; OTCQX: CTHCF) (“CoTec”) and HyProMag Limited. HyProMag Limited is 100% owned by Maginito Limited which is owned on a 79.4%/20.6% basis by Mkango Magnetic Materials Limited (AIM/TSX-V: MKA) and CoTec.
For more information, please visit www.hypromagusa.com
For further information, please contact:
John Singleton – Director – john.singleton@hypromagusa.com
Will Dawes – Director – will@mkango.ca
Eugene Hercun – Company Communications – +1 604 537 2413
Forward-Looking Information Cautionary Statement
Statements in this press release regarding the Company and its investments which are not historical facts are “forward-looking statements” which involve risks and uncertainties, including statements relating to the results of the Expansion PFS; the targeted salable magnet capacity of approximately 4,192 metric tons per year by 2034; the targeted alloy powder and total salable material of approximately 6,000 metric tons by 2034; the targeted production of approximately 1,526 metric tons per year of recycled NdFeB magnets and magnet products at the Northlake Texas Facility; the targeted commencement of initial magnet cutting and finishing operations in the first half of 2027; the targeted commissioning of Phase 1 of the Northlake, Texas Facility in mid-2028; expected job creation; and the benefits to the Company which may be implied from such statements.
Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements due to known and unknown risks and uncertainties affecting the Company, including but not limited to: availability of financing; environmental risks and costs; permitting and regulatory risks; labor costs and shortages; uncertain supply and price fluctuations in materials; increases in energy costs; labor disputes and work stoppages; equipment leasing and availability; heavy equipment demand and availability; contractor and subcontractor performance; worksite safety issues; project delays and cost overruns; extreme weather events; social, transport, or geopolitical disruptions; availability of suitable feedstock; equipment performance and reliability; the ability to secure customer offtake and feedstock supply arrangements; changes in rare earth and magnet prices; and the accuracy of the estimates and assumptions underlying the Expansion PFS.
Forward-looking statements are based on assumptions that the Company considers reasonable, including the assumptions underlying the Expansion PFS, the availability of financing on acceptable terms, the receipt of required permits and approvals, and the availability of feedstock and equipment on the terms assumed in the Expansion PFS.
The Company assumes no obligation to update forward-looking statements in this press release except as required by law. Readers should not place undue reliance on the forward-looking statements and information contained in this news release.