HyProMag USA Targets Tripled Domestic Magnet Output with $2 Billion Expansion Plan

2026-01-12 companies

New York, Monday, 12 January 2026.
HyProMag USA completes studies to triple domestic rare earth magnet production by 2029, unlocking a projected $2 billion valuation while securing a critical U.S. supply chain.

Scaling the Domestic Supply Chain

On January 12, 2026, HyProMag USA formally announced the completion of expansion concept studies for new industrial hubs in South Carolina and Nevada, marking a pivotal step in its strategy to secure a domestic supply chain for rare earth magnets [1][2]. This development triggers the commencement of pre-feasibility studies effectively immediately, with the company aiming to triple its manufacturing capacity by 2029 [1]. The strategic roadmap outlines a surge in the production of sintered neodymium-iron-boron (NdFeB) magnets and alloy powders, targeting an increase from 1,552 metric tons to 4,656 metric tons per annum across its three U.S. sites [2]. This represents a capacity increase of 200 percent, a scale necessary to meet the burgeoning demand for critical components in electric vehicles and defense technologies.

Economic Impact and Strategic Valuation

The financial projections underpinning this expansion reveal a robust economic case for domestic magnet recycling and manufacturing. Based on forecast market prices, the combined development of the Texas, South Carolina, and Nevada hubs yields a post-tax net present value (NPV) exceeding $2 billion, accompanied by a real internal rate of return (IRR) of 38.7 percent [1][2]. Even under more conservative current market price scenarios, the conceptual valuation remains significant, showing a post-tax NPV of $1.143 billion and a 27.6 percent real IRR [1]. Julian Treger, CEO of CoTec, emphasized that the Texas Hub—located at the Ironhead Commerce Center in Dallas-Fort Worth—serves not merely as a standalone project but as the “foundation of a scalable U.S. manufacturing platform” [1][2].

Technological Edge and Operational Timeline

Central to HyProMag USA’s operational efficiency is the deployment of Hydrogen Processing of Magnet Scrap (HPMS) technology. Developed at the University of Birmingham with over $100 million in research and development investment, this process offers a sustainable alternative to traditional methods, requiring 88 percent less energy and reducing carbon emissions by 85 percent [1][2]. The company has outlined a clear timeline for implementation, with the commissioning of the three plants projected to occur between 2027 and 2029 [2]. Once fully operational, these facilities are expected to generate approximately 300 skilled jobs in magnet manufacturing, reinforcing the domestic industrial base [2]. The Texas Hub alone, utilizing three HPMS vessels, is projected to generate a post-tax NPV of $409 million at current prices, validating the technology’s commercial viability before the broader rollout [2].

Corporate Structure and Market Momentum

HyProMag USA operates as a joint venture, split 50:50 between CoTec Holdings Corp. and HyProMag Limited, the latter being a subsidiary of Mkango Resources Ltd. [1]. This expansion announcement supports the joint venture’s intention to pursue a public listing in the United States, capitalizing on the momentum of the green energy transition [2]. The broader strategy of the parent companies is evident in recent movements; for instance, CoTec recently solidified its position in the critical minerals sector when its investee, MagIron LLC, completed the acquisition of the Reynolds Pellet Plant in Indiana on December 31, 2025 [4]. Meanwhile, Mkango Resources (LON: MKA) has seen recent market volatility, trading at GBX 43 as of January 11, 2026, a decline of 10.417 percent since the start of the year, highlighting the high-stakes nature of the resource sector as these companies race to bring capacity online [7].

Sources

Manufacturing Rare Earths