Mkango, Cotec's HyProMag expands supply deal with ILS

Executive Summary

• Mkango Resources Ltd. (via its interest in HyProMag USA) has expanded its feedstock supply agreement with Intelligent Lifecycle Solutions LLC (ILS) to include additional sources of neodymium-iron-boron (NdFeB) feedstock beyond hard-disk drives.
• ILS is currently securing and storing NdFeB feedstock from hard-disk drives in South Carolina and Nevada, with plans to procure bulk sources including electric motor rotors, wind turbine magnets, and MRI machine components.
• HyProMag USA’s Texas hub is targeted to produce 750 metric tonnes per annum of recycled sintered NdFeB magnets and 807 metric tonnes per annum of co-products, with a total payable capacity of 1,557 metric tonnes within five years of commissioning.

Key Details

• Expanded Feedstock Sources: In addition to hard-disk drives (HDDs), ILS will procure bulk NdFeB feedstock including rotors from electric motors, wind turbine magnets, speaker assemblies, and MRI machines.
• Joint Technical Procurement: ILS and HyProMag USA have formed a joint technical procurement team to accelerate purchases and onboard the Inserma Anoia SL third-generation HDD magnet separation system.
• Equipment Delivery: HyProMag USA targets delivery of the separation machines to ILS preprocessing sites by the end of December 2025.
• Feedstock Stockpiling: ILS has formally commenced stockpiling feedstock pursuant to the supply and preprocessing site share agreement.
• Texas Hub Production Capacity:
  • Annual production: 750 metric tonnes of recycled sintered NdFeB magnets.
  • Annual co-products: 807 metric tonnes of associated NdFeB co-products.
  • Total payable capacity: 1,557 metric tonnes NdFeB within five years of commissioning.
  • Operating life: 40 years.
• Job Creation: The facility is expected to create 90 to 100 skilled magnet manufacturing jobs.
• Carbon Footprint: An independent ISO-compliant study confirmed a CO2 footprint of 2.35 kilograms CO2 equivalent per kilogram of NdFeB cut sintered block product.
• Engineering Expansion: In March 2025, HyProMag USA expanded the detailed engineering phase to include three HPMS vessels and initiated concept studies for further expansion and complementary long-loop recycling.
• Concept Studies:
  • September 2025: Commissioned a concept study to evaluate expansion into Nevada and South Carolina in collaboration with ILS.
  • September 2025: Commissioned a concept study to evaluate long-loop recycling with Worley Group Inc.

Notable Quotes

• Julian Treger, Chief Executive of Cotec: "The ILS supply agreement continues to progress multiple NdFeB feedstocks that have been successfully tested through the accelerated piloting program at the University of Birmingham's HPMS [hydrogen processing of magnet scrap] pilot facility, which will support the technical procurement team as it continues to target and purchase bulk NdFeB feedstock sources across the United States. HyProMag USA is continuing to work closely to build long-term partnerships with commercial suppliers and federal and state governments to facilitate these feedstock sources."
• Graham Davy, Chief Executive Officer of ILS: "ILS is excited to expand its procurement efforts to other NdFeB sources in partnership with HyProMag USA. The additional procurement and preprocessing operations will assist the recovery and recycling of critical strategic materials within the U.S. and provide a platform for further ILS growth. We look forward to working collaboratively with manufacturers and with their supply and vendor chains to facilitate the growth of rare earth material recycling using HyProMag's innovative magnet recycling technology in the USA."