TSX-V- and Aim-listed Mkango Resources’ 42% indirectly owned UK-based rare earths recycling subsidiary HyProMag has been granted funding of €3.7-million to further develop its knowledge base, infrastructure and recycled neodymium magnet production capacity.
The funding will help realise HyProMag’s transition to commercial production in Germany and strengthen the European rare earth supply chain.
The grants comprise a €2.5-million grant from the European Regional Development Fund and a €1.2-million grant from the Ministry of Economic Affairs, Labour and Tourism Baden-Württemberg.
HyProMag is seeking to advance a project called Innovation Centre for Science & Economy Northern Black Forest IZWW, which has a total envisaged cost of €6.1-million, of which 60% will be funded by the grants, on the basis that for each €1 spent on the project by HyProMag, a further €1.50-contribution can be claimed from the grants.
The first phase of the project includes the development of a production facility in Baden-Württemberg state with a minimum capacity of 100 t/y of neodymium magnets comprising recycled rare earth sintered magnets, alloy pellets and powders.
The initial production facility would be a similar size to the £4.3-million project being developed by HyProMag and the University of Birmingham at Tyseley Energy Park in the UK, which is funded by Driving the Electric Revolution – an Industrial Strategy Challenge Fund challenge delivered by UK Research and Innovation.
HyProMag aims to reach commercial production pf neodymium magnets in the UK next year and in Germany in 2024, using the patented Hydrogen Processing of Magnet Scrap process.
The company expects the recycling of rare earth magnets to play a key role in the development of robust supply chains to catalyse and support growth in the electric vehicle sector and in other clean technologies.
HyProMag director Professor Carlo Burkhardt comments that setting up this ultra-efficient manufacturing facility for rare earth permanent magnets is a unique opportunity to establish technological leadership along the entire value chain for rare earth magnets.
“By combining the competencies of industry and science in the Northern Black Forest and further locations in Baden-Württemberg, the project will play a pivotal role in supporting the structural change from internal combustion engines to electromobility.
“Moreover, it will enable development of further high-performance applications, where permanent magnets and rare earths already have a central role as critical components, which will become even more important in the foreseeable future.”
HyProMag is 80% owned by HyProMag Limited, which is, in turn, 42% owned by Mkango.