HyProMag USA, LLC, a joint venture focused on establishing a secure, domestic supply of rare earth magnets, has provided a significant update on its advanced recycling and manufacturing project in the Dallas-Fort Worth, Texas area. The project, aimed at bolstering the United States’ reliance on foreign rare earth elements, is making strong progress, with its Engineering, Procurement, and Construction Management (EPCM) Detailed Design phase now 25% complete. This development is a crucial piece of business news for the U.S. critical minerals sector.
Progress on the Texas Hub and Advanced Technology
The Dallas-Fort Worth (DFW) location in Texas serves as the central hub for HyProMag USA’s ambitious plans. The ongoing Detailed Design, being executed by U.S.-based PegasusTSI Inc. and Canada-based BBA USA Inc., is incorporating cutting-edge Grain Boundary Diffusion (GBD) techniques. This advanced method allows for greater operational flexibility and the production of higher coercivity magnets—magnets with a superior resistance to demagnetization, capable of operating at higher temperatures. The GBD process is vital for creating high-performance neodymium iron boron (NdFeB) permanent magnets, which are indispensable for a wide range of modern technologies, from electric vehicles and wind turbines to advanced defense systems.
Leveraging UK Pilot Success for U.S. Operations
HyProMag Group has significantly invested in its pilot facility in the UK, tripling its throughput capacity. This expanded pilot operation has successfully completed over 50 Hydrogen Processing of Magnet Scrap (HPMS) runs in recent months. The valuable data and experience gained from these trials are being directly applied by HyProMag USA to refine its engineering design criteria and improve recovery rates for the U.S. facility. Furthermore, approximately 900 kilograms of recycled NdFeB alloy powder have already been produced at the UK’s Tyseley Energy Park, demonstrating the viability of the HPMS technology, which was originally developed at the University of Birmingham. This technology offers a sustainable, low-carbon method for recycling magnets, producing an NdFeB product with a reported carbon footprint of just 2.35 kg CO2 eq. per kg.
Strengthening U.S. Rare Earth Supply Chains
The strategic importance of securing a domestic supply of rare earth magnets cannot be overstated. Historically, the U.S. has been heavily reliant on China for these critical materials, posing significant supply chain vulnerabilities. Initiatives like the Defense Production Act (DPA) are designed to foster domestic production, and HyProMag USA’s project is poised to meet these objectives. The facility aims to provide a sustainable, long-term, domestic source of NdFeB permanent magnets, enabling secure, low-carbon, and traceable rare-earth supply chains. The project is expected to create approximately 90 to 100 skilled magnet manufacturing jobs in Texas, revitalizing the U.S. magnet sector.
Strategic Expansion and Partnerships
Beyond its flagship Texas hub, HyProMag USA is actively exploring expansion into new locations. A scoping study is underway, led by PegasusTSI and BBA, to assess the establishment of additional rare earth permanent magnet recycling plants in Nevada and South Carolina. This strategy aims to create a comprehensive “hub-and-spoke” network across the United States. Collaboration is key to this expansion, with HyProMag USA already engaged in feedstock supply agreements with global electronics recycler Intelligent Lifecycle Solutions (ILS), which has begun stockpiling materials from its facilities in South Carolina and Nevada. This partnership ensures a steady stream of end-of-life materials for processing.
Key Players and Funding
HyProMag USA is a 50:50 joint venture between CoTec Holdings Corp. and HyProMag Limited. The project has garnered significant attention and support, including a Letter of Intent (LOI) from the U.S. Export-Import Bank (EXIM) for financing up to $92 million. This aligns with the U.S. Government’s “Make More in America” initiative. Permitting for the Texas facility is slated to begin in Q3 2025, with site selection in the Dallas-Fort Worth area narrowing down options to four potential locations. Commercial discussions are underway to secure a 25-year lease for a hub site of approximately 125,000 to 140,000 sq. ft. The project targets initial revenue generation in the first half of 2027.
The ongoing advancements by HyProMag USA underscore a critical shift towards domestic production of essential rare earth magnets, promising greater supply chain resilience and a more sustainable future for critical U.S. industries. This news signals a significant step forward in the nation’s efforts to achieve greater independence in the rare earth magnet market.
