(Alliance News) - Mkango Resources Ltd on Wednesday said its subsidiary HyProMag GmbH has received a EUR3.7 million grant to fund Germany's first rare earth magnets recycling plant.
The grant includes EUR2.5 million from the European Regional Development Fund, and EUR1.2 million from the Ministry of Economic Affairs, Labour & Tourism Baden-Wurttemberg.
The project will support government initiatives to strengthen European rare earth supply chains and accelerate the green transition, Mkango Resources said.
It added that the grant will help to develop the company's local knowledge base, infrastructure and recycled NdFeB production capacity as HyProMag GmbH transitions to commercial production in Germany.
The total cost of the project is expected to be EUR6.1 million, of which approximately 60% will be funded by the grants.
The initial capacity of the plant will be a minimum of 100 tonnes per annum of a sintered neodymium iron boron permanent magnet, comprising recycled rare earth sintered magnets, alloy pellets and powders.
Mkango Resources said the plant will be the first in Germany that uses the patented hydrogen processing of magnet scrap process.
The first production is targeted to commence in the UK in 2023, and Germany to follow in 2024.
"We envisage that the recycling of rare earth magnets will 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," Carlo Burkhardt, director of HyProMag GmbH, said.
Mkango Resources shares were up 12% to 15.65 pence on Wednesday morning in London.
By Jaskeet Briah; jaskeetbriah@alliancenews.com
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Mkango Res (MKA)