Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF) said it is collaborating in a £3.4mln magnet recycling project to help secure the supply of rare earth magnets in the UK and reduce the environment impact.
Mkango Rare Earths UK Ltd and HyProMag, in which Mkango has a 42% interest, will take part in the "Secure Critical Rare Earth Magnets for UK" (SCREAM) project alongside Bowers & Wilkins (B&W Group), European Metal Recycling, GKN Automotive Innovation Centre, Jaguar Land Rover and University of Birmingham.
A UK Research and Innovation grant will fund £2.4mln, around 71%, of the project.
SCREAM will establish a recycled source of rare earth magnets in the UK to provide greater security of supply to UK industry, whilst aiming to achieve a 10% reduction in cost and a significant reduction in environmental impact.
Short loop (magnet to magnet) recycling is expected to have a significant environmental benefit, requiring an estimated 88% less energy versus primary mining to separation to metal alloy to magnet production.
More than 90% of all electric vehicles produced to-date use permanent magnet traction motors containing neodymium-iron-boron (NdFeB) magnets.
As part of the project, Mkango will establish a pilot plant in the UK to chemically process recycled HPMS (Hydrogen Processing of Magnet Scrap) NdFeB powder and magnet swarf - the powder produced from grinding and finishing magnets - from a range of scrap sources including electronic waste, electric motors and wind turbines, complementing the short loop magnet recycling routes being developed in parallel, it said.
“We envisage that the 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,” said Mkango chief executive William Dawes.
“This project further cements Mkango's and HyProMag's early mover advantage in the rare earth magnet recycling sector, highlighting its competitive position and strong network of industry and academic partners."
HyProMag will work with the University of Birmingham to develop a new semi-continuous version of the HPMS process.
“Rare earth magnets play a key role in clean energy technologies including electric vehicles and wind turbine generators, and they are also a key component in electronic devices including mobile phones, hard disk drives and loudspeakers,” said Nick Mann, operations general manager of HyProMag. “The UK has no domestic source of primary rare earths.”
Very little rare earth material is currently recycled mainly due to the technological difficulties in separating magnets from waste.