Technology Innovation for a Net Zero Future

Welcome to Maginito Limited.
Maginito Limited was established by Mkango Resources Ltd (TSXV/AIM:MKA) (www.mkango.ca), which holds a 79.4% interest in Maginito, to pursue downstream green technology opportunities in the rare earths supply chain, encompassing NdFeB magnet recycling and innovative rare earth alloy, magnet and separation technologies, underpinned by access to sustainably sourced primary and secondary rare earth raw materials. The company’s strategy for value creation is geared to accelerating growth in the electric vehicle market, wind power generation and other industries driven by decarbonisation of the economy.

In March 2023, Mkango and CoTec announced that they had closed a £1.5 million investment by CoTec into Maginito for a 10% interest, with an option to increase to 20.6%. In October 2023, CoTec converted its £2 million convertible loan note in Mkango into additional shares of Mkango's subsidiary Maginito Ltd. As a result of the conversion, CoTec's equity position in Maginito increased from 10% to 20.6%. Maginito owns 100% of HyProMag Limited. Maginito and CoTec agreed to collaborate on the commercialisation of downstream rare earth technologies in the United States, and Mkango Rare Earths UK Ltd. was transferred to become a subsidiary of Maginito. Maginito and CoTec are evaluating development of recycling, chemical processing alloy, and magnet manufacturing in the United States, with scoping studies and site selection underway in advance of detailed feasibility studies, and ongoing discussions with potential customers and recycling partners.

Maginito holds a 100% interest in HyProMag Limited (www.hypromag.com) focused on short loop rare earth magnet recycling in the UK, a 90% direct and indirect interest (assuming conversion of Maginito’s recently announced convertible loan) in HyProMag GmbH (www.hypromag.de), a company focused on short loop rare earth magnet recycling in Germany, and a 100% interest in Mkango Rare Earths UK Ltd, a company focused on development of innovative hydrometallurgical technologies and long loop rare earth magnet recycling in the UK via a chemical route.

HyProMag Ltd

HyProMag is 100% owned by Maginito Limited, a 79.4% owned subsidiary of UK and Canada listed, Mkango Resources Ltd (TSXV/AIM:MKA), and 20.6% owned by CoTec Holdings Corp. The core technology being commercialised by HyProMag is the highly energy efficient, patented Hydrogen Processing of Magnet Scrap ("HPMS") technology to extract and demagnetise NdFeB (neodymium iron boron) alloy powders from magnets embedded in scrap and redundant equipment. HyProMag’s technology and operations are being deployed in the UK, Germany, and the United States, with other jurisdictions under consideration.

The core technology being commercialised by HyProMag Ltd is the highly energy efficient, patented Hydrogen Processing of Magnet Scrap (“HPMS”) technology to extract and demagnetise NdFeB alloy powders from magnets embedded in scrap and redundant equipment.

HPMS is a key enabler for recycling of rare earth magnets in electronics, electric vehicles, robotics, wind turbines and other applications, with major competitive advantages in the rare earth magnet recycling sector, underpinned by approximately US$100m of R&D expenditure at the University of Birmingham (“UoB”) and with associated project partners. This is coupled with the ability to manufacture rare earth alloys and magnets with significantly reduced carbon footprint.

HyProMag was founded in 2018 by the late Professor Emeritus Rex Harris, former Head of The Magnetic Materials Group ("MMG") within the School of Metallurgy and Materials at the University of Birmingham; Professor Allan Walton, current Head of the MMG; and two Honorary Fellows, Dr John Speight and Mr David Kennedy, leading world experts in the field of rare earth magnetic materials, alloys and hydrogen technology, with significant industry experience.

The MMG has been active in the field of rare earth alloys and processing of permanent magnets using hydrogen for over 40 years. Originated by Professor Emeritus Rex Harris, the hydrogen decrepitation method, which is used to reduce NdFeB alloys to a powder, is now ubiquitously employed in worldwide magnet processing. The HPMS process was originally developed within the MMG and subsequently licenced to HyProMag.

HPMS is a key enabler for recycling of rare earth magnets in electronics, electric vehicles, robotics, wind turbines and other applications, with major competitive advantages in the rare earth magnet recycling sector, underpinned by approximately US$100m of R&D expenditure at the University of Birmingham and with associated project partners. This is coupled with the ability to manufacture rare earth alloys and magnets with significantly reduced carbon footprint. HyProMag is establishing short loop recycling facilities for NdFeB magnets at Tyseley Energy Park in Birmingham, UK and other locations using the patented HPMS process to provide a sustainable solution for the supply of NdFeB magnets and alloys for a wide range of markets including, for example, automotive and electronics. Short-loop magnet recycling is expected to have a significant environmental benefit, requiring an estimated 88% less energy versus primary mining to separation to metal alloy to magnet production. The plant at Tyseley Energy Park is being developed together with the University of Birmingham, with a minimum capacity of 100tpa NdFeB. This £4.3 million project is being funded by Driving the Electric Revolution, an Industrial Strategy Challenge Fund challenge delivered by UK Research and Innovation (“UKRI”). The focus of the project is to take the HPMS technology to a greater scale and efficiency with revolutionary new design of processing equipment and extensive automation of processing methods for inert atmosphere powder handling and pressing. HyProMag is the primary industrial user and operator of the plant.

First commercial production of recycled NdFeB alloy was achieved in June 2025, which followed successful piloting at the University of Birmingham in 2022 as featured on BBC Midlands News: Solving a sticky problem. Recycling superstrong magnets! In November 2021, HyProMag established an 80%-owned subsidiary in Germany, HyProMag GmbH, to roll out commercialisation of HPMS technology into Germany and Europe. HyProMag GmbH is 20% owned (10% following conversion of the HyProMag GmbH convertible loan) by Professor Carlo Burkhardt of Pforzheim University, co-ordinator of the €14m SusMagPro and €13m REEsilience EU funded recycling projects, with approximately 40 partners across the European supply chain. HyProMag GmbH is developing a similar sized plant to that at Tyseley Energy Park. Initial capacity is expected to be a minimum of 100tpa NdFeB, comprising recycled rare earth sintered magnets and alloys and will be the first in Germany using the patented HPMS process, with first production targeted for Q1 2026.

Left: Sintering Furnace, 400kg batch, at Tyseley Energy Park                          
Right: Recycled NdFeB sintered blocks

HyProMag GmbH

In November 2021, HyProMag established an 80%-owned subsidiary in Germany, HyProMag GmbH, to roll out commercialisation of HPMS technology into Germany and Europe. HyProMag GmbH is 20% owned (10% following conversion of the HyProMag GmbH convertible loan) by Professor Carlo Burkhardt of Pforzheim University, co-ordinator of the €14m SusMagPro and €13m REEsilience EU funded recycling projects, with approximately 40 partners across the European supply chain. HyProMag GmbH is developing a similar sized plant in Baden-Württemberg to that at Tyseley Energy Park. Initial capacity is expected to be a minimum of 100tpa NdFeB, comprising recycled rare earth sintered magnets and alloys and will be the first in Germany using the patented HPMS process, with first production targeted for Q1 2026.

Left: Jet Mill and Powder Hoppers
Right: HPMS Reactor

HyProMag USA

In January 2024, CoTec and Maginito Limited announced the formation of a 50/50 joint venture entity which will roll out HyProMag's HPMS recycling technology into the United States. The JV company, named HyProMag USA LLC, is developing a low cost, low carbon, sustainable rare earth magnet recycling and production business underpinned by HPMS. HyProMag Ltd has sublicensed the HPMS technology to HyProMag USA.

The results of HyProMag USA’s bankable feasibility study were announced to the market in November 2024, based on a hub and spoke model using three HPMS vessels and one magnet manufacturing hub which will be based in Texas. The Feasibility Study includes the completion of detailed engineering designs, as well as permitting and potential site acquisition. Environment and permitting studies will be supported by US based Weston Solutions, Inc. First Revenue targeted in 2027. Following completion of the Detailed Engineering, which is underway, CoTec and Mkango will make a joint decision as to whether HyProMag USA will proceed with the construction of the US Project. CoTec is responsible for funding the project development costs. Funding provided by CoTec would be in the form of shareholder loans to HyProMag USA.

Mkango Rare Earths UK – Long-loop Rare Earth Magnet to Oxide Recycling

In June 2024, Mkango Rare Earths UK ("Mkango UK") has successfully commissioned a pilot plant at Tyseley Energy Park, Birmingham, designed to produce separated magnet rare earths (neodymium/praseodymium and dysprosium/terbium carbonates or oxides) via a long-loop recycling process. Mkango UK is 100% owned by Maginito Limited ("Maginito"), which is 79.4% owned by Mkango and 20.6% owned by CoTec Holdings ("CoTec").

The long-loop pilot plant received 70% of its funding from the UKRI's Driving Electric Revolution Challenge, delivered by Innovate UK, as part of the grant-funded project "Secure Critical Rare Earth Magnets for the UK" (SCREAM). Project partners include HyProMag, Bowers & Wilkins, European Metal Recycling (EMR), GKN Automotive, Jaguar Land Rover, and the University of Birmingham.

Both long-loop and short-loop recycling technologies are underpinned by the patented HPMS technology developed at University of Birmingham, which liberates magnets from end-of-life scrap streams in a cost effective and energy efficient way to produce a recycled NdFeB alloy powder, which is manufactured into a magnet (via the short loop process) or into a rare earth carbonate or oxide (via the long-loop chemical process).

Optimisation of long-loop pilot operations is underway, targeting near-term pilot scale production of the first 50kg batch of rare earth carbonates and oxides, in parallel with completion of scoping studies and evaluation of options to advance long loop recycling via stand-alone development, joint venture or other commercial arrangements. The long-loop recycling route is used to process NdFeB HPMS powder not suitable for short-loop recycling and for the processing of magnet swarf (i.e. the powder produced from grinding and finishing magnets).

Technology development is supported by a number of Government grant funded projects in which Mkango Rare Earths UK, HyProMag Limited, HyProMag GmbH and University of Birmingham are participants: