New Texas Facility to Boost Domestic Rare Earth Magnet Supply by 2027
Fort Worth, Monday, 27 July 2026.
HyProMag USA will launch a Texas magnet facility by 2027. Crucially, its advanced recycling technology cuts energy use by 88% to secure a domestic, low-carbon supply chain.
Accelerating the Domestic Rare Earth Value Chain
On July 26, 2026, HyProMag USA announced a strategic shift to a phased development plan for its “Texas Hub” recycling and manufacturing facility located in the Dallas-Fort Worth area [1][2][3]. This development follows the company’s occupation of its Dallas-Fort Worth facility on June 5, 2026 [5]. By establishing early magnet finishing capabilities, the company seeks to accelerate its commercial timeline and secure a foothold in the domestic rare earth supply chain well before its fully integrated operations are online [1][2].
The First Step: Magnet Finishing in 2027
Under the newly announced phased strategy, the commissioning of initial neodymium-iron-boron (NdFeB) magnet finishing equipment in Texas is targeted for the first half of 2027 [1][2][3]. This initial phase will utilize up to 20 tonnes of magnet blocks imported from HyProMag Group’s existing operations in the United Kingdom and Germany [1][2][3]. Julian Treger, the Chief Executive Officer of CoTec Holdings Corp., noted that establishing this finishing capability ahead of the integrated plant allows the company to produce customer-ready magnets in the United States and collaborate directly with clients on technical specifications and qualification [1][2][3].
A Two-Phase Roadmap to Domestic Production
The second phase of the development centers on the commissioning of the Hydrogen Processing of Magnet Scrap (HPMS) section at the Texas Hub, which is targeted for the second quarter of 2028 [1][2][3]. This milestone will enable the integration of U.S.-sourced magnet-bearing feedstock directly into domestic operations, completing the circular loop [1][2][3]. Upon commissioning this integrated phase, the facility is projected to achieve an initial annual capacity of 678 metric tonnes, which comprises 400 metric tonnes of recycled sintered NdFeB magnets and 278 metric tonnes of NdFeB co-products [1][2][3]. This combined capacity can be calculated as 678 metric tonnes [1][2][3].
Scaling to Full Capacity
Following the 2028 integration, HyProMag USA plans a staged ramp-up to reach a full targeted annual capacity of approximately 1,526 metric tonnes of magnetic products [1][2][3]. This represents a significant scaling effort, with the full capacity representing an increase of 125.074 percent over the initial phase’s 678-tonne target [1][2][3]. This phased scaling allows the company to build out downstream processing capacities systematically while minimizing upfront operational risks [2].
Revolutionary Recycling Technology and Corporate Joint Venture
At the core of the Texas Hub’s operations is the proprietary HPMS technology, which was developed over 15 years with more than US$100 million in research and development investment [2][3]. This short-loop recycling process is highly efficient, requiring 88% less energy and reducing carbon emissions by 85% compared to conventional, primary rare earth magnet production methods [2][3]. It provides a highly competitive, low-carbon alternative to traditional mining and refining pathways [2][3].
Joint Venture Structure
HyProMag USA operates as a 50:50 joint venture between CoTec Holdings Corp. (TSXV: CTH) [GPT] and HyProMag Limited [2][3]. HyProMag Limited is itself a subsidiary of Maginito Limited, which is owned 79.4% by Mkango Resources Ltd. (TSXV: MKA / AIM: MKA) [GPT] and 20.6% by CoTec [2][3]. Commenting on the joint venture’s international reach, Will Dawes, Chief Executive of Mkango Resources, emphasized that this development uniquely positions HyProMag to supply finished magnets across key markets in the United Kingdom, Germany, and the United States [1][2][3].
Current Engineering Progress and Financial Outlook
Engineering and procurement activities for the Texas Hub are already underway. On June 22, 2026, HyProMag USA commenced procurement of long-lead equipment and advanced detailed engineering, feedstock aggregation, and financing discussions [1][2][3]. The Class 2 AACE Capital Cost Estimate and Detailed Design study, being executed by engineering firms PegasusTSI and BBA, is currently 38% complete, with a 3D plant model based on Q4 2025 estimates already finalized [1][2][3].
Exploring a United States Listing
In tandem with engineering milestones, the joint venture partners are actively pursuing corporate finance opportunities. In December 2025, the owners announced they were exploring a potential U.S. listing for HyProMag USA [1][2][3]. The company continues to engage investment banks and financial advisors to navigate this public listing process [1][2][3], which could provide the necessary capital to fund the transition from the H1 2027 finishing phase to the Q2 2028 integrated recycling operations [1][2][3].
Strategic Implications and Industry Risks
The establishment of a domestic NdFeB magnet finishing and recycling facility is a critical development for U.S. industrial policy, which seeks to reduce reliance on foreign supply chains—particularly China—for materials vital to electric vehicles, wind turbines, and defense technologies [GPT]. However, the path forward is not without hurdles. As of July 26, 2026, key risk factors for the project include potential delays in equipment commissioning, supply chain bottlenecks for rare earth feedstocks, and volatility in global NdFeB magnet demand and market pricing [1][2].
Sources
This article is compiled based on the following sources:
[1] https://www.newswire.com/news/hypromag-usa-to-establish-early-magnet-finishing-capability-as-part-of-22834665
[2] https://www.accessnewswire.com/newsroom/en/metals-and-mining/hypromag-usa-to-establish-early-magnet-finishing-capability-as-part-of-phased-tex-1196596
[3] https://www.share-talk.com/mkango-targets-early-2027-start-for-texas-magnet-production/
[4] https://www.facebook.com/TheMetalnomist/posts/hypromag-opens-a-german-rare-earth-magnet-recycling-plant-using-hpms-technology-/1460130299467167/
[5] https://thetexasconstructionnews.com/category/regional-news/dallas-fort-worth/
[6] https://thetexasconstructionnews.com/category/engineering/
[7] https://thetexasconstructionnews.com/category/regional-news/
[8] https://www.dibconsortium.org/current-members/