6,000 tons of critical magnetic material: Massive US rare earth project eyes 4x output

HyProMag USA is weighing three new rare earth magnet plants that could bring its annual output of magnets, alloy powder, and other saleable material to about 6,000 metric tons by 2034.

The expansion would build on the company’s planned first plant in Northlake, Texas, and use a shared finishing hub in central Texas to supply US customers.

The company announced the results of an independent pre-feasibility study on October 26. Prepared by PegasusTSI and BBA USA, the study examined how HyProMag could scale up domestic production by using both discarded magnets and primary alloy.

The Northlake plant is in detailed engineering, with commissioning of its first phase expected in mid-2028.

Finished magnets would account for most of the output

The study projects that the expanded network, including Northlake, could produce around 4,192 metric tons of finished magnets annually by 2034.

It could also produce 1,305 metric tons of magnetic alloy powder and 503 metric tons of other saleable material. Together, the new facilities would add 4,474 metric tons of annual output beyond the volume planned for Northlake.

The expansion would proceed in phases, with three regional production plants supported by the central Texas hub. The hub would handle manufacturing, finishing and technology work for the network.

Its products would include commercial neodymium-iron-boron (NdFeB) magnets for US customers in sectors such as advanced manufacturing, energy and defense.

Discarded magnets and primary alloy would feed the plants

The expansion builds on Northlake’s use of a recycling method called Hydrogen Processing of Magnet Scrap.

The wider network would use material recovered from magnets at the end of their service life alongside primary alloy to make new products. HyProMag said using both sources would give it more flexibility in sourcing material as production grows.

“Importantly, the platform is designed with the flexibility to utilize primary alloy feedstock alongside recycled materials, providing greater supply chain resilience and supporting long-term operational competitiveness,” CoTec CEO Julian Treger said.

HyProMag could also gain access to primary feedstock from Mkango Magnetic Materials under existing supply rights.

That would give the company another potential source of material as it expands from recycling magnet scrap to manufacturing finished magnets.

Study values the expansion at up to $2.06 billion

The study estimated an incremental post-tax net present value of $1.85 billion to $2.06 billion and a post-tax internal rate of return of 31% to 36%.

The projections cover the three proposed plants and the central Texas hub. Northlake is counted separately in the financial analysis, while its planned production is included in the 2034 output target.

“The Study indicates the scalability of the HyProMag business model and provides a framework for disciplined growth in the United States using HyProMag USA’s first plant in Northlake,” Mkango CEO Will Dawes said.

The study also points to competitive manufacturing costs and the potential to make lower-carbon finished magnets.

The expansion remains at the pre-feasibility stage, with Northlake further along in development as the first facility in the proposed US network.