Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF), its 79%-owned associate Magnito and partner CoTec have now created a new joint venture vehicle, HyProMag USA LLC, which will develop a low-cost, low carbon, sustainable rare earth magnet recycling and production business.
The joint venture company will be underpinned by the HPMS recycling technology.
It will initially focus on completing a bankable feasibility study which will envisage a hub and spoke model using three HPMS vessels and one magnet manufacturing hub.
Mkango noted that the partners recently kicked off a ‘request for proposal’ process from leading engineering, procurement and construction management (EPCM) providers and have ordered three HPMS reactors to expedite the development of the US project.
“We see the United States as a core component of our growth strategy and look forward to progressing the US feasibility study over the course of the year, in parallel with further development of operations in the UK, Germany and other jurisdictions,” Mkango chief executive Will Dawes said in a statement.
“HyProMag's recycling technology has major competitive advantages versus other recycling technologies and is a key enabler for cost effective and energy efficient separation, recycling and production of rare earth magnets with a significantly reduced carbon footprint.
“We are receiving strong interest for recycled magnets from potential customers and for recycling solutions from original equipment manufacturers (OEMs), and automotive and recycling companies."
Julian Treger, CoTec chief executive, meanwhile added: “CoTec and Mkango are focused on delivery and will be exploring US Government funding and strategic partnerships for feed supply and rare earth element (REE) magnet offtake in the first half of 2024.
"We look forward to working and collaborating with local, state and federal stakeholders targeting the completion of the feasibility study."