HyProMag USA Study Outlines Three Potential New Rare Earth Magnet Plants
The proposed expansion would increase annual neodymium iron boron magnet production to approximately 4,192 metric tons by 2034.
HyProMag USA has released an independent pre-feasibility study (PFS) outlining plans for three new rare earth magnet plants in the United States. The study evaluates potential sites in South Carolina, Nevada, and a second location in Texas, which would also serve as a central manufacturing and finishing hub.
What Happened
The PFS, conducted by PegasusTSI and BBA USA, assesses the scalability of HyProMag USA’s operations, which are a 50:50 joint venture between CoTec Holdings and HyProMag Limited. Including the company’s first plant in Northlake, Texas, the four facilities are projected to produce about 4,192 metric tons of neodymium iron boron (NdFeB) magnets per year by 2034. This represents a fourfold increase over the Northlake plant’s planned output of approximately 1,048 metric tons. The Northlake facility is currently in detailed engineering, with Phase 1 commissioning expected in mid-2028.
Why It Matters
The proposed plants utilize the Hydrogen Processing of Magnet Scrap (HPMS) technology to recover magnet-grade material from end-of-life EV motors and other scrap without chemical processing. Each new plant is intended to produce unfinished sintered NdFeB blocks, which would then be processed at the central Texas hub through vacuum induction melting, strip-casting, grain boundary diffusion (GBD), machining, plating, and coating. The study estimates that GBD would increase the share of high-grade magnets from about 10% to 20% of output. Financially, the PFS projects a post-tax net present value of $2.06 billion for the recycled feedstock-only case and $1.85 billion for the case combining recycled feedstock with primary NdFeB alloy. Capital costs are estimated at approximately $623 million and $656 million, respectively. The all-in sustaining cost at the first new plant in 2030 is projected to be between $37.4 and $41.6 per kg, compared to a forecast average selling price of about $100.5 per kg.
Executive Commentary
Julian Treger, CEO of CoTec, stated that the study "confirms the opportunity to establish a significant domestic rare earth magnet manufacturing platform in the United States." Will Dawes, CEO of Mkango, noted that the study "indicates the scalability of the HyProMag business model and provides a framework for disciplined growth in the United States." Allan Walton, founder of HyProMag, emphasized that the platform aims to "demonstrate that HPMS technology can recover rare earth magnetic materials and convert them into high-performance commercial magnet products."
The Bottom Line
The study confirms the potential for a significant domestic rare earth magnet manufacturing platform in the U.S., leveraging HyProMag’s HPMS technology to scale production from its Northlake base to four facilities by 2034.
