HyProMag USA has received a letter of intent (LOI) from the US Export-Import Bank (EXIM) to provide financing of up to $92m for a new rare earth recycling and magnet production facility in Dallas-Fort Worth, Texas, US.
This development aligns with the US Government’s efforts to boost domestic mineral production.
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HyProMag USA is a joint venture between CoTec and HyProMag, the latter being fully owned by Maginito, which is in turn majority-owned by Mkango Resources.
The company is leveraging hydrogen processing of magnet scrap (HPMS) recycling technology to establish its integrated facility.
This technology, developed at the University of Birmingham’s Magnetic Materials Group, represents a significant advance over existing rare earth magnet recycling methods.
CoTec CEO Julian Treger said: “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 US companies facing oversees competition to ensure the US reshores certain critical export areas, including the domestic manufacturing of permanent NdFeB [neodymium] magnets.
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By GlobalData“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.”
The LOI from EXIM Bank is a response to Executive Order 2421, which mandates immediate action to enhance US mineral production.
These actions include accelerating permit processes, mobilising capital for producers and creating strategic mineral stockpiles.
In November 2024, HyProMag USA revealed plans for a feasibility study that includes the Texas hub and two pre-processing sites in South Carolina and Nevada.
By March 2025, the company announced the expansion of its engineering phase to incorporate additional HPMS vessels and is exploring options for further growth.
The Dallas Fort Worth Hub is projected to produce 750 tonnes per annum (tpa) of recycled sintered NdFeB magnets and 807tpa of NdFeB co-products, with a total capacity of 1,557t within five years of operation.
The facility is expected to operate for 40 years, creating 90–100 skilled jobs and supplying the US market with NdFeB alloy powder.
An independent study in March 2025 confirmed the low carbon footprint of HyProMag USA’s products, with just 2.35kg of carbon dioxide equivalent per kilogram of NdFeB cut sintered block product.
Mkango CEO Will Dawes said: “The HyProMag USA development will be transformational for rare earth supply chains in the US, and we are very pleased to see this reflected in the interest from EXIM.
“With the detailed engineering phase for the project well under way, 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.”
