HyProMag Limited, in which Mkango's subsidiary Maginito Limited holds a 25% equity interest, is a partner in the RaRE project.
The project will establish for the first time an end to end supply chain to incorporate recycled rare earth magnets into electric vehicles, whereby recycled magnets will be built into an ancillary electric motor to ultimately support the development of a commercial ancillary motor suite, Mkango said in a stock market statement released after the market close on Wednesday.
The total budget for RaRE is £2.6mln, of which Innovate UK will fund £1.9mln with the project partners coughing up the remaining £700,000. HyProMag's contribution will be fully funded from the £300,000 investment made by Maginito in January 2020.
William Dawes, the chief executive of Mkango, said the company is “very excited” by the project and the opportunity to scale-up hydrogen processing of magnet scrap.
“We envisage that recycling of rare earth magnets will play a key role in the development of robust supply chains to catalyse and support growth in the electric vehicle sector and in other clean technologies. Further building on our platform within the circular economy and downstream markets is a key component of our strategy, underpinned by the sustainable development of the Songwe Hill rare earths project in Malawi," he said in the statement.
Nick Mann, the operations general manager of HyProMag, said neodymium iron boron magnets are essential for many future technologies, and the emerging electric vehicle market is of increasing importance.
“Being involved at this level means we not only get to work with and supply recycled magnets to some of the most innovative and globally recognised companies, but also allows us to influence the design of products with the aim of making recycling a better option in the future,” Mann said.
Shares in Mkango were up 11% at 4.1p this morning.