The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
"For electric traction motors alone, estimates suggest that global demand will increase to twenty times its 2018 level by 2040."
"According to Adamas Intelligence, Toronto, global consumption of neodymium (NdFeB) magnets grew by 18.1 percent in 2021 and is forecast to increase by a compound annual growth rate of 8.6 percent through 2035" (from the Noveon article)
Those are kerazy growth numbers and we're not even talking about military hoarding yet which is absolutely nailed-on to happen.
'demand in this sector is expected to increase by a factor of almost four over the same period. To ensure long-term security of supply, intensive research is therefore being carried out into processes for recycling neodymium and the like. '
https://newsroom.porsche.com/en/2023/innovation/porsche-engineering-magnetic-raw-materials-32040.html
'Rare earths and technology for the green revolution '
Speaker at 2023 Junior Indaba conference Jburg 6-7 June
https://www.juniorindaba.com/speakers/2023-speakers
Justin says a comparable business has a valuation of hundreds of millions of dollars with the US 'super interested in it'
2.00
https://www.youtube.com/watch?v=Ya_iht83KJM
looking to have 5 US recycling plants within 4 months ... probably not all RE ones but certainly sounds like more than one will be
Good read this, a blueprint for what will likely happen to Maginito / HyproMag
https://recyclingtoday.com/news/noveon-targets-rare-earth-magnet-manufacturing-using-recycled-material/
- In 2018, it began construction on a commercial site in San Marcos, Texas, with initial magnet production capacity installation starting in 2020.
- That was followed shortly by an investment from the U.S. Department of Defense (DoD) of $28.8 million
The company developed novel magnetic products and processes in 2012, and the first magnets using grain boundary engineering and recycling technology were produced commercially in 2014. It then set up a pilot plant in Austin, Texas, in 2016.
Once we prove commercial NDFEB we should really start to accelerate quickly (both in developing more plants and valuation)
Noveon seem to have done very well in NA to date (with Toyota)
Dunn says Noveon has developed relationships with original equipment manufacturers, including collecting all the rotor subassemblies from about eight Toyota Motors plants in North America, and recyclers in North America. The company is teaching its raw material suppliers how to disassemble items to facilitate rare earth magnet recovery.
This is an interesting snippet
- The supply-demand imbalance broadly for these materials is so significant that pricing is likely to grow. As Noveon proves its recovery model, Dunn says pricing will increase, encouraging additional recyclers to recover rare earth magnets.
Cant see how we don't end up with a valuation significantly north of £100m+ just for the RE magnets in the next 12-18 months, that would be a ~4x bagger from here (discounting songwe) and would just be the start
Critical Importance
Strategic
Multiple Bidders
Demand outweighing supply
Blue Sky Scale *(as evident by five potential plants already in the pipeline)
Profitable (rule of thumb $80m NPV vs $15m Capex)
Premiums (Less emissions vs mining)
Green discounts / tax reductions (10-15% in EU and US)
Https://www.innovationnewsnetwork.com/rare-earths-forgotten-foundation-green-economy/33641/
Mkango and HyproMag get a mention
MDA is definitely the drag here...all I can say on it is Lotus seems to be making the headlines at the moment with their MDA struggles but Mkango were previously deemed ahead of them and it looks to me like they are quietly but significantly moving behind the scenes as it were in securing that MDA that works for ALL stakeholders....
The fact is though recycling will be profitable before and far more profitable than any mine ...
Great to see. Looking forward to see these recycling plants gain traction and start generating cash.
I know it's a beaten drum but this MDA delay is mad. Especially after the chatter that it was finalized in late January
Look at that ...
https://twitter.com/big_lithium/status/1665070857293639681
Critical times for securing Mkangos resources :)
Julian Treger talking on US recycling plants.
https://youtu.be/Ya_iht83KJM
Seems like it certainly was the time to take HyproMag 100% for Mkango .... could be some nice coming newsflow... then a nice MDA cherry on top
'For all the time and effort invested, recycling rare earth materials has been broadly unsuccessful. The current process is to either melt magnets back to a master alloy or use solvent extraction to extract rare earth materials. Not only are these processes energy-intensive, but they also require magnets to be separate from other components in the motor housing, which often isn’t the case. With a limited supply available, manufacturers are looking for a more practical and cost-effective way of operating systems using magnet-based technology.
Working with the leader in magnet recycling and manufacturing, HyProMag, and the University of Birmingham, our goal is to broaden the range of scrap for the extraction of magnets and scale-up the extraction and recycling processes to make as many motor technologies as sustainable as possible.
The recycled magnets will be used in the bespoke ancillary motors designed and manufactured by AEM, and applied by Bentley Motors. Unipart will then develop a scalable manufacturing route for the volume production of this design.
The Opportunities
There are currently no motor designs on the market using recycled rare earth materials. Aside from making this an industry first, there are broader opportunities from the outcome of the RaRE project.
For instance, the scrap separation process that will be developed has applications within both global waste handling and waste handling facility designs. There are also benefits for recycled rare earth production facilities from the models of scrap processing and magnet manufacturing that will be developed, and all these processes and materials will be applicable across several sectors, creating a huge number of opportunities in different applications.
These outcomes from RaRE will present an opportunity to create a competitive advantage for UK motor manufacturing by developing a differentiated supply chain for motors and power electronics, which is expected to grow to £5 billion by 2025. The cost-effective production of magnetic materials could turn the UK into an exporter of magnets for tractions motors and inherently protect the UK from future supply issues. '
I guess they can now produce those magnets
'ABOUT THE RaRE PROJECT
RaRE will establish an end to end supply chain for recyclable rare-earth ancillary motors. Building on work completed at the University of Birmingham to devise a method to extract magnets from waste electronics supplied by Intelligent Lifecycle Solutions. The material will be re-processed back into new magnetic materials at pilot scale by Hypromag to demonstrate the quality of material which can be produced in terms of its magnetic behaviour, mechanical performance and corrosion resistance which are key to the end user application.
The recycled magnets will be built into an ancillary electric motor designed by Advanced Electric Machines Research to a Bentley Motors specification and focused on reducing the overall complexity of electrical systems in electric vehicles and designed with recycling in mind. This will be the first time that such a recyclable motor will have been demonstrated. Unipart will take this motor design and use it as the core focus for the design of a flexible volume motor assembly line suitable for production volumes of 100,000 units p.a.
The total budget for RaRE is £2.6 million, of which the Office for Low Emission Vehicles (OLEV) via Innovate UK will fund £1.9 million with project partners funding the £0.7 million balance. HyProMag’s contribution will be fully funded from the £300,000 investment made by Maginito in January 2020.'
It's good to see Xi is taking the MDA seriously there
Xi Calls On China's Top National Security Officials To Prepare For "Worst Case Scenarios"
Yup - 5% off the low now and still going.
Neodymium price continues to recover
Sharedealing - the transfer of wealth from the impatient to the patient!
Just patience some people don't have it and want a quick buck.😉
It is OH so beautiful. Cant believe anyone is still selling!!
For Maginito’s HyProMag technology, scoping studies and site selection in the US are underway ahead of a feasibility study. Discussions with the US Government, potential customers and recycling partners have commenced and are ongoing. The US roll-out will be completed in parallel with the UK and German based developments and will benefit from operational experience and
production ramp-up in the UK and Germany. Revenue from the US operation is targeted for 2025/2026. This US operation will be owned on a 50:50 basis between CoTec and Maginito.
Malawi must be careful not to kill the geese that will lay the golden eggs. It would be a big mistake for Malawi to be too greedy in these negotiations. They could end up with no forex no mining sector and no investors. No point in having rare earths that stay underground.
A staring match...who blinks first