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Highlights
CoTec and Mkango Resources appoint PegasusTSI and BBA USA for engineering and construction management of rare earth magnet project.
HyProMag USA, co-owned by CoTec, progresses in establishing a magnet recycling facility in the Dallas-Fort Worth area.
The project aims to contribute to the US supply of neodymium-iron-boron magnets and co-products.
CoTec is making significant strides in the rare earth magnet sector through its joint venture with Mkango Resources. This collaboration focuses on the development of a rare earth magnet recycling and manufacturing facility in the United States. CoTec and Mkango Resources have appointed PegasusTSI and BBA USA to manage the engineering, procurement, and construction (EPCM) of the project, located in the Dallas-Fort Worth area. The facility will focus on recycling and producing neodymium-iron-boron (NdFeB) magnets, which are crucial for various high-tech applications, including electric vehicles and renewable energy technologies.
Engineering and Construction Milestone
The initial phase of the project involves completing the detailed engineering design and value engineering. This phase will support the creation of an AACE Class 2 capital cost estimate, which will be pivotal in determining the financial framework for the project. CoTec has highlighted that this stage of the work will also aid in finalizing the selection of the project site, which is expected to be completed within the first half of the year. The project is progressing according to its planned schedule, and the EPCM work is aligned with these milestones.
Collaboration with Governments and Stakeholders
HyProMag USA, the entity responsible for the magnet recycling facility, is a 50-50 joint venture between CoTec and HyProMag. The company is focused on commercializing innovative hydrogen processing technology for recycling magnet scrap across multiple regions, including the UK, the US, and Germany. As the project moves forward, HyProMag USA is engaging in discussions with local, state, and federal government entities. These conversations are essential to ensure smooth operations and align with the objectives of the US Minerals Security Partnership, which supports the development of critical minerals supply chains in cooperation with industry players and governments.
Project Timeline and Goals
The project is expected to unfold over a two-year period, with the work conducted from the PegasusTSI office in Tampa. The first revenue generation is anticipated to occur after the completion of EPCM work and the approval for the notice to proceed, which is scheduled for the latter part of the year. HyProMag USA aims to provide a significant portion of the US demand for NdFeB permanent magnets within five years of the facility’s commissioning. The facility's annual production will include recycled sintered neodymium-iron-boron magnets and associated co-products, contributing to the long-term stability of the operation.
Contribution to US Domestic Supply
The HyProMag USA project is set to support the US’s growing need for rare earth magnets, which are crucial for many modern technologies, particularly in the energy and automotive sectors. The facility is designed to produce a substantial amount of recycled neodymium-iron-boron magnets and co-products over a 40-year operating lifespan. This development marks a significant milestone in securing a stable supply of critical materials needed for manufacturing high-performance magnets, further strengthening the resilience of supply chains in the region.
