Mkango Resources Ltd. Announces First Production Run for the Commercial Scale Hydrogen Processing of Magnet Scrap Vessel
MKA.V
Published on 07/07/2025 at 07:21
Mkango Resources Ltd. announced first production runs for the commercial scale Hydrogen Processing of Magnet Scrap vessel, which is currently being commissioned by the University of Birmingham ("UoB") with the support of commercial partner, HyProMag Limited ("HyProMag"), as part of the new scaled-up rare earth magnet recycling and manufacturing plant (the "Plant") located at Tyseley Energy Park, Birmingham, UK ("TEP"). The HPMS vessel is fundamental to the Plant, producing a high grade, recycled neodymium-iron-boron ("NdFeB") alloy powder for commercial sale or to feed downstream magnet manufacturing. Development of the Plant was largely funded by Driving the Electric Revolution, an Industrial Strategy Challenge Fund delivered by UK Research and Innovation via UoB.
As the commercial partner for the Plant and exclusive licensee from the UoB for the patented HPMS technology, HyProMag has entered into an agreement with the UoB for utilisation of Plant equipment and infrastructure. HyProMag is targeting UK sales of around 0.5 tonnes per month of recycled HPMS NdFeB product by the end of July, increasing to a minimum of 2 tonnes per month by the end of 2025, in advance of potential expansion to 100-350 tonnes per year in 2026 with further expansion options being evaluated. HyProMag commercial operations will be underpinned by existing NdFeB scrap inventories, ongoing purchases of NdFeB scrap, as well as product offtake, spot purchases and sales.
The NdFeB product from HPMS has a total rare-earth content (neodymium/praseodymium together with dysprosium/terbium) exceeding 28% and is analogous to a typical NdFeB alloy for magnet manufacture, whilst having a minimal CO2 footprint relative to both primary and other recycled NdFeB products. Initially sold to third parties for long-loop chemical processing, this material will in future be used for magnet manufacture within HyProMag; Following the commissioning of the Plant's downstream powder processing plant (for HPMS powder sieving, blending and jet milling), magnet manufacturing presses and sintering furnaces, targeted by the end of Third Quarter 2025, HyProMag will have access to capacity for production of value-added magnets at scale - enabling both customer qualification and commercial sales of rare earth magnets, which will form an increasing proportion of the NdFeB product mix going forward; At present, the accelerated pilot programme at the UoB is providing NdFeB powder, block and finished magnet samples to customers, to support product marketing, offtake discussions and scale-up of planned operations in the UK, Germany and the United States as announced previously: HPMS technology was developed by the Magnetic Materials Group ("MMG") at the University of Birmingham ("UOB"), and is underpinned by approximately USD 100 million of research and development funding. Furthermore, bringing back sintered magnet manufacturing to the UK after a 20-year hiatus will be a major step forward for the UK's critical mineral ambitions.
Since then, multiple process routes incorporating HPMS have been developed and proven at pilot scale. HyProMag USA LLC ("HyProMag USA") completed a feasibility study in 2024 for a rare earth magnet recycling and manufacturing operation in the USA, with detailed engineering currently underway and first production targeted for H1 2027. Such factors and risks include, without limiting the foregoing, the availability of (or delays in obtaining) financing to develop Songwe Hill, the recycling plants being developed by Maginito in the UK, Germany and The US (the "Maginito Recycling Plants"), governmental action and other market effects on global demand and pricing for the metals and associated downstream products for which Mkango is exploring, researching and developing, geological, technical and regulatory matters relating to the development of Songwe Hill, the development of Songwe Hill., the ability to scale the HPMS and chemical recycling technologies to commercial scale, competitors having greater financial capability and effective competing technologies in the recycling and effective competing technologies in the recycle and separation business of Maginito and separation business of Maginita and Mkango, availability of Maginito and Mkango, availability of scrap supplies for Maginito's recycling activities, government regulation (including the recycling activities, government regulation (including the impact of environmental and other regulations) on and other regulations) on the recycling and Mkango, HyProMag, HyProMaginito's recycling activities of Maginito's recycling and Mkango, government regulation (the "Maginito's recycling activities, HyPro Maginito's recycling activities.