HyProMag USA Boosts US Rare Earth Magnet Recycling Efforts

CoTec Holdings (TSXV:CTH,OTCQB:CTHCF) and Mkango Resources (TSXV:MKA,AIM:MKA,OTCPL:MKNGF) have achieved a significant milestone in their US operations through their subsidiary HyProMag USA.

On March 13, HyProMag USA commissioned an Inserma rare earth magnet pre-processing system at Intelligent Lifecycle Solutions' facility in Williston, South Carolina.

The newly commissioned system at the Williston site is designed to recover neodymium-iron-boron (NdFeB) magnets from end-of-life hard disk drives. It separates the magnet assemblies within three seconds per drive, allowing the facility to handle over 60,000 hard drives per week.

HyProMag USA's operations in Williston are part of its larger "hub-and-spoke" model. This approach involves recovering and pre-processing magnet-bearing materials at regional facilities before supplying them to a planned recycling and manufacturing hub in Dallas-Fort Worth, Texas.

The company aims to leverage this model to build a scalable and resilient US rare earth recycling ecosystem and supply chain, with the goal of producing 10 percent of the US domestic supply for rare earth magnets within five years.

Expansion of the US supply chain

This initiative aligns with broader efforts to reduce reliance on imported rare earth minerals, which are vital for national security and economic competitiveness. In line with this, HyProMag USA was selected by the US Department of State as a Minerals Security Partnership project.

The commissioning event attracted attention from federal and state leaders, highlighting the importance of domestic capabilities in critical materials and advanced manufacturing. Local and regional leaders, including Barnwell County Council Chairman Freddie Houston and SouthernCarolina Alliance President Danny Black, also expressed their support for the project.

Julian Treger, CEO of CoTec Holdings, underscored the importance of partnerships and community support in establishing a new domestic platform for rare earth magnet recycling and manufacturing. He highlighted that collaborations, such as the one with ILS, are essential for building the necessary supply chains and operational capabilities to support large-scale magnet production.

Global critical minerals market trends

In the broader market, the critical metals sector is witnessing significant developments as supply chain concerns continue. Tungsten has experienced a massive price rally, outpacing gold and copper. This surge is attributed to China's export controls on tungsten products, which have driven manufacturers to secure alternative supply sources. The metal's key applications in defense and industrial manufacturing make it indispensable amid growing geopolitical tensions.

Editorial Disclosure: CoTec Holdings is a client of the Investing News Network. This article is not paid-for content.

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