Mkango German subsidiary completes first commissioning of processing tech

(Sharecast News) - Mkango Resources said on Thursday that its German rare earth magnet recycling subsidiary had completed initial commissioning runs of its key processing technology, marking a step forward in scaling commercial production in Europe.

The AIM- and TSX-V-listed company said HyProMag GmbH had successfully completed first commissioning runs of the Hydrogen Processing of Magnet Scrap (HPMS) vessel at its plant in Pforzheim, Germany.

It said the facility integrated a commercial-scale recycling and manufacturing line for neodymium-iron-boron (NdFeB) magnets, with full permitting in place for production of up to 750 tonnes per annum, targeted through phased expansion over the next three years.

The HPMS vessel, which produces high-grade recycled NdFeB alloy powder for sale and downstream processing, was described as central to the plant's operations.

Mkango said a jet mill for powder processing had been installed and would be commissioned in the coming weeks, while other major equipment, including a transverse alignment press and sintering furnace, had been delivered and was being installed sequentially.

Infrastructure upgrades, including gas storage and power supply enhancements, have also been completed.

Once fully commissioned, the plant was expected to have an initial capacity of around 100 tonnes per annum of NdFeB, rising to approximately 350 tonnes with multiple shifts, with further expansion to 750 tonnes under evaluation.

HyProMag was in ongoing discussions with customers for both alloy powder and finished magnets to support the scale-up.

An opening ceremony for the facility was scheduled for 28 April 2026 and would be presided over by Germany's Federal Ministry for Economic Affairs and Energy.

The project had received partial funding from the European Regional Development Fund and the Baden-Württemberg Ministry of Economic Affairs, Labour, and Tourism.

"This is a major milestone for HyProMag, creating a strong platform for further scale-up at our site in Pforzheim and beyond," said chief executive Will Dawes.

"We continue to evaluate complementary acquisition and organic growth opportunities in the rare earths supply chain, and see the growing rare earths ecosystem in Germany as one of the cornerstones of our growth strategy.

"With the rare earth magnet recycling and manufacturing plants being scaled-up and developed by HyProMag in UK and USA, and Mkango's advanced stage rare earth mining and separation projects in Malawi and Poland, we are well positioned to provide customers with a one-stop-shop solution for rare earth products across the supply chain."

Mkango said the German plant formed part of a broader strategy to commercialise HPMS technology globally, alongside existing operations in the UK and planned expansion in the US, where a feasibility study had been completed and first production was targeted in 2027.

At 1258 BST, shares in Mkango Resources were up 0.71% at 35.25p.

Reporting by Josh White for Sharecast.com.

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