CoTec Holdings Corp. and Mkango Resources Ltd. are pleased to announce HyProMag USA, a Delaware corporation, has received a Make More in America (MMIA) domestic finance letter of interest (“LOI”) from the U.S. Export-Import (“EXIM”) Bank for its first integrated rare earth recycling and magnet-making facility in Dallas-Fort Worth, Texas.
In terms of the letter, EXIM may be able to consider potential financing of up to $92 million of the project’s costs with a repayment tenor of 10 years.
Julian Treger, CoTec CEO commented: “We are very pleased with EXIM’s interest in the Project. The Project is strongly aligned with EXIM’s “Make More in America” initiative, which provides beneficial financing terms for U.S. companies facing oversees competition to ensure the United States reshores certain critical export areas, including the domestic manufacturing of permanent NdFeB magnets. We believe that the Project could be a major contributor to the United States’ targeted permanent magnet independence and the speed at which HyProMag USA’s capabilities could be deployed distinguishes the Project from potential competitors.”
Will Dawes, Mkango CEO commented: “The HyProMag USA development will be transformational for rare earth supply chains in the United States, and we are very pleased to see this reflected in the interest from EXIM. With the detailed engineering phase for the project well underway, HyProMag USA is well positioned to create a major new domestic hub for recycling and magnet manufacturing, and a platform for further growth in North America.”
The issuance of this LOI is aligned with Executive Order 2421 of March 20, 2025 “Immediate Measures to Increase American Mineral Production” which includes near-term actions to be determined and implemented by the agencies to fast-track permits, mobilize capital for mineral producers, and create offtake agreements for strategic stockpiling for minerals critical to the United States’ defense, technology, and energy.
HyProMag is commercializing Hydrogen Processing of Magnet Scrap (HPMS) recycling technology in the UK, Germany and the United States. HPMS technology was developed at the Magnetic Materials Group (MMG) at the University of Birmingham, underpinned by approximately US$100 million of research and development funding, and has major competitive advantages versus other rare earth magnet recycling technologies, which are largely focused on chemical processes but do not solve the challenges of liberating magnets from end-of-life scrap streams.
In November 2024, HyProMag announced an independent Feasibility Study which includes a Dallas Fort Worth recycling and magnet Hub, and two pre-processing facilities located in South Carolina and Nevada respectively. In March 2025, HyProMag USA announced the expansion of the detailed engineering phase to include three HPMS vessels and that it was initiating concept studies for further expansion and complementary “Long Loop” recycling. The DFW Hub’s annual production is expected to be 750 metric tons per annum of recycled sintered NdFeB magnets and 807 metric tons per annum of associated NdFeB co-products (total payable capacity – 1,557 metric tons NdFeB within five years of commissioning) over a 40-year operating life. It is expected the production facility will provide significant optionality to supply the U.S. market with additional NdFeB alloy powder while assisting in revitalising the U.S. magnet sector with the creation of 90-100 skilled magnet manufacturing jobs.
In March 2025, HyProMag USA announced the results of an independent ISO-Compliant product carbon footprint study which confirmed an exceptionally low CO2 footprint of 2.35 kg CO2 eq. per kg of NdFeB cut sintered block product.
Ownership
HyProMag USA is owned 50:50 by CoTec and HyProMag Limited (“HyProMag”). HyProMag is 100 per cent owned by Maginito Limited (“Maginito”), which is owned on a 79.4/20.6 per cent basis by Mkango and CoTec.
