Dallas-Fort Worth, Texas, October 13, 2026 – HyProMag USA LLC (“HyProMag USA” or the “Company”) is pleased to provide an update on development activities for its Texas Hub rare earth magnet recycling and manufacturing project. HyProMag USA has secured electrical power capacity with Oncor Electric Delivery Company LLC (“Oncor”) for the Texas Hub development. The Company expects the facility’s electricity requirements to be supplied predominantly from renewable energy resources.
Key Highlights
- Power capacity secured with Oncor Electric Delivery Company LLC for both cutting and finishing operations and Phase 1 developments with a pathway through a sub-station upgrade to provide power for Phase 2.
- Pegasus TSI, Inc. (“Pegasus”) has commenced contractor selection for cutting and finishing operations and Weston Solutions, Inc. is advancing permitting activities.
- Targeted commissioning of cutting and finishing operations in H1 2027 with the processing of neodymium iron boron (“NdFeB”) magnet blocks, initially supplied from HyProMag Group operations, to produce finished magnets.
- Phase 1 development is targeted for completion in mid-2028 and is designed to produce approximately 550 tonnes per annum (“tpa”) of NdFeB magnet blocks and finished magnets and approximately 484 tpa of co-products, representing approximately 1,034 tpa of total payable production.
- Phase 2 development envisions expansion to approximately 1,526 tpa of total payable production.
- Electricity supply expected to be sourced predominantly from renewable energy resources.
Julian Treger, CoTec CEO commented: “Securing power with Oncor, advancing permitting activities through Weston Solutions and commencing contractor selection are important milestones for the Texas Hub. Initial cutting and finishing operations in 2027 are expected to establish U.S. magnet finishing and qualification capabilities aligned with internationally recognised magnetic material and quality standards, while the full Phase 1 development will deliver integrated recycling and magnet manufacturing capacity. Together, these activities further de-risk the project and demonstrate continued progress towards establishing a domestic and sustainable rare earth magnet supply chain in the United States.”
Cutting and finishing operations in 2027 comprise the initial magnet finishing and qualification facility, enabling production and qualification of finished NdFeB magnets using magnet blocks supplied from HyProMag Group operations. The facility is designed to process NdFeB magnet blocks and support qualification of finished magnets in accordance with ASTM A977/A977M, the national classification standard for magnetic materials, together with quality management systems aligned with ISO 9001 and customer-specific quality, performance and traceability requirements. The objective is to establish qualification capabilities that meet the requirements of U.S. customers and establish a strategic training facility for the finishing of NdFeB magnets in advance of the main Texas Hub developments.
Weston Solutions, Inc. is advancing permitting activities while the Company’s engineering partner Pegasus has commenced a Request for Quotation (“RFQ”) process for the selection of a general contractor for cutting and finishing operations. Pegasus and BBA USA Inc. are the Company’s U.S.-based engineering, procurement and construction management firms.[i]
Phase 1 represents the first integrated recycling and magnet manufacturing stage of the Texas Hub and is designed to produce approximately 550 tpa of sintered NdFeB magnet blocks and finished magnets, together with approximately 484 tpa of co-products, representing total payable production of approximately 1,034 tpa. Upon completion of Phase 2, the Texas Hub is expected to produce approximately 1,048 tpa of sintered NdFeB magnet blocks and cylinders, together with approximately 478 tpa of co-products, representing total payable production of approximately 1,526 tpa.
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, defense systems, robotics, electric vehicles, and advanced electronics. Leveraging the revolutionary HPMS technology, developed over 15 years with over US$100 million in R&D investment, the company delivers 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 Texas Hub, the targeted commissioning of cutting and finishing operations in H1 2027 and the supply of magnet blocks from HyProMag Group operations, the targeted completion of Phase 1 in mid-2028, the expansion envisaged for Phase 2 and the sub-station upgrade to provide power for it, the expected supply of electricity from renewable energy resources, the qualification of finished magnets to industry and customer standards, expected production numbers and payable production, the advancement of permitting activities, the selection of a general contractor 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; and social, transport, or geopolitical disruptions; availability of suitable feedstock; the supply of magnet blocks from HyProMag Group operations; the timing and completion of the Oncor sub-station upgrade; the qualification of finished magnets to customer requirements; equipment performance and reliability; and the ability to secure customer offtake and feedstock supply arrangements.
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.
[i] https://www.cotec.ca/news/cotec-and-mkango-appoint-lead-engineers-pegasustsi-and-bba-to-perform-engineering-procurement-and-construction-management-epcm-services-for-hypromag-usa-to-produce-rare-earth-magnets-in-the-us