Following Completion of Expansion Concept Studies HyProMag USA Advances Expansion to Three States Supporting a Path To Triple U.S. Rare Earth Magnet Capacity by 2029

Executive Summary

• HyProMag USA completed concept studies for new hubs in South Carolina and Nevada, projecting a three‑fold increase in U.S. NdFeB magnet and alloy production to 4,656 metric tons per year by 2029.
• The expansion is valued at $2.18 billion post‑tax NPV with a 38.7% real IRR under forecast market prices, supporting the commencement of pre‑feasibility studies and reinforcing HyProMag USA’s intent to pursue a U.S. public listing.
• CoTec Holdings retains a 60.3% equity interest in HyProMag USA and expects the new plants to create roughly 300 skilled jobs while delivering a low‑carbon footprint (2.35 kg CO₂‑eq/kg NdFeB product).

Key Details

• Production Capacity Increase: From 1,552 t to 4,656 t of NdFeB per annum across three hubs (Texas, South Carolina, Nevada).
• Financial Valuation:
• $1.143 billion post‑tax NPV and 27.6% IRR at current market prices.
• $2.180 billion post‑tax NPV and 38.7% IRR at forecast market prices.
• Project Schedule: Commissioning of the three plants planned between 2027 – 2029; Texas Hub not included in this expansion timeline.
• Modular Scenarios Evaluated:
• Case 1 – NdFeB alloy powder only (HPMS).
• Case 2 – Alloy powder + sintered block production.
• Case 3 – Full integration: alloy powder, sintered block, magnet finishing & packaging.
• Pre‑feasibility Study Focus: Site selection, product mix, plant configuration, layout, permitting, logistics, and technical marketing for South Carolina and Nevada hubs.
• Economic Metrics: Post‑tax NPV (7% discount) of $409 M (base case) and $780 M (forecast prices) for the Texas Hub detailed in 2025 Detailed Design.
• Job Creation: Approximately 300 skilled manufacturing positions anticipated across the new U.S. plants.
• Carbon Footprint: Independent ISO‑compliant study confirms 2.35 kg CO₂‑eq per kg of sintered NdFeB block for Texas Hub feasibility.
• Feedstock Security: Co‑location with Intelligent Lifecycle Solutions (ILS) facilities; expansion contingent on securing adequate feedstock and offtake agreements.
• Equity Ownership: CoTec holds 60.3% of HyProMag USA (50% direct, 10.3% indirect).
• Strategic Intent: Expansion supports HyProMag USA’s scalable U.S. manufacturing platform and its planned U.S. public listing.

Notable Quotes

“The Expansion Concept Study demonstrates that HyProMag USA's Texas Hub is not a one‑off project, but the foundation of a scalable U.S. manufacturing platform… materially strengthens HyProMag USA's readiness for the next phase of growth and capital markets engagement.” – Julian Treger, CoTec CEO