CALGARY, AB — January 12, 2026 — Leads & Copy — Mkango Resources Ltd. has announced that HyProMag USA, LLC is moving forward with expansion plans to triple its U.S. rare earth magnet capacity by 2029.
Concept studies have been completed for the expansion of HyProMag USA’s South Carolina and Nevada hubs. Pre-feasibility studies are now underway, marking a significant step toward increasing domestic manufacturing capacity.
The expansion aims to increase the total magnet and alloy production from 1,552 metric tons of NdFeB (neodymium-iron-boron) to 4,656 metric tons of NdFeB per annum across three hubs, including the existing Texas location. The studies reinforce the company’s intention to pursue a U.S. public listing.
The basis for the expansion studies is the recently completed Class 2 AACE capital cost estimate, part of the Detailed Engineering Design and Value Engineering Phase for the Texas Hub project at the Ironhead Commerce Center in Dallas-Fort Worth, Denton County, Texas.
The Texas Hub’s 2025 Detailed Design base case, based on operating three Hydrogen Processing of Magnet Scrap (HPMS) vessels, showed a post-tax Net Present Value (NPV) of $409 million based on current market prices and $780 million based on forecast prices, using a 7% discount rate.
The pre-feasibility studies for the South Carolina and Nevada hubs will focus on site selection, saleable products and project configuration, optimal site layout, permitting, logistics, and technical marketing.
The expansion concept study evaluated three investment scenarios based on modular configurations:
The plants in South Carolina and Nevada will be co-located with Intelligent Lifecycle Solution (ILS) sites. The expansion is conditional on securing adequate feedstock and offtake.
The plants are expected to support the revitalization of the U.S. magnet sector and create about 300 skilled manufacturing jobs.
The company’s modular, low carbon, magnet-to-magnet recycling platform is designed to support end-of-life recovery of rare earth materials from servers, storage systems, and related equipment.
Julian Treger, CoTec CEO, stated that the expansion concept study demonstrates that HyProMag USA’s Texas Hub is the foundation of a scalable U.S. manufacturing platform.
Will Dawes, Mkango CEO, commented that HyProMag USA continues to develop a strong platform for further growth in the United States, validating the company’s business model and strategic positioning.
HyProMag USA is developing advanced rare earth magnet recycling and manufacturing operations, aiming to establish a secure domestic U.S. supply chain for NdFeB magnets. Their HPMS technology, developed at the University of Birmingham, uses 88% less energy and reduces carbon emissions by 85% compared to conventional methods.
HyProMag USA targets 10% of U.S. domestic magnet supply within five years.
HyProMag USA LLC is owned 50:50 by CoTec and HyProMag Limited. HyProMag Limited is 100 per cent owned by Maginito Limited which is owned on a 79.4/20.6 per cent basis by Mkango Resources Ltd. (AIM/TSX-V:MKA) and CoTec.
Mkango also owns the advanced stage Songwe Hill rare earths project in Malawi and the Pulawy rare earths separation project in Poland.
William Dawes, Chief Executive Officer, will@mkango.ca, Canada: +1 403 444 5979
Alexander Lemon, President, alex@mkango.ca
Source: Mkango Resources Ltd.
