Mkango Resources (AIM:MKA) said its HyProMag USA joint venture will accelerate commissioning of finished neodymium-iron-boron (NdFeB) magnet production equipment in Texas, targeting the first half of 2027, well ahead of the fully integrated Texas Hub facility now scheduled for the second quarter of 2028.
The AIM and TSX-V listed rare earth recycling group develops magnet recovery and manufacturing capacity through its Maginito subsidiary, which owns HyProMag Limited.
Initial U.S. operations will use up to 20 tonnes of magnet blocks shipped from HyProMag Group facilities in the UK and Germany, shaped and finished in Texas for domestic customers, while European supply lines remain unaffected.
The integrated Texas Hub, incorporating HyProMag's Hydrogen Processing of Magnet Scrap (HPMS) technology, is expected to begin at initial annual capacity of roughly 400 tonnes of recycled sintered NdFeB magnets and 278 tonnes of co-products, before ramping toward a previously announced full capacity of approximately 1,526 tonnes.
HyProMag USA has already ordered long-lead equipment, including HPMS vessels, and supplied first sample magnets to prospective U.S. customers spanning smaller buyers and original equipment manufacturers.
"Establishing finishing capability in Texas ahead of the integrated plant is a complementary step that will allow us to begin producing customer-ready magnets in the United States," said Julian Treger, chief executive of CoTec Holdings, which co-owns HyProMag USA alongside HyProMag Limited.
Mkango chief executive Will Dawes said the move "de-risks our route to market" while giving the group flexibility to supply the UK, Germany and U.S. from parallel operations.
A Class 2 capital cost estimate for the Texas Hub, led by engineering firms PegasusTSI and BBA, is roughly 38% complete.
News Intelligence what this means for the company
Mkango's HyProMag USA joint venture is accelerating its U.S. magnet finishing capability to H1 2027—18 months ahead of the fully integrated Texas Hub—by importing semi-finished magnet blocks from UK and German facilities for final shaping and customer delivery. This phased approach lets the company begin generating U.S. revenue and customer relationships while the larger recycling plant (targeting ~400 tonnes annual capacity at launch, scaling to ~1,526 tonnes) completes engineering and construction, reducing execution risk on the path to market.
The acceleration de-risks Mkango's U.S. market entry by decoupling magnet finishing from the completion of integrated recycling infrastructure, allowing near-term revenue generation and customer validation before the Texas Hub ramps. However, the company remains pre-revenue on its core Songwe Hill rare earth project in Malawi; this magnet recycling venture is a complementary downstream play whose near-term cash contribution depends on execution of both the finishing line and the larger facility.
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