Highlights

• HyProMag USA aims to establish the first fully integrated rare earth recycling and magnet manufacturing facility in the United States.
• The project will produce 1,557 metric tons of sintered NdFeB magnets annually.
• It will partially offset U.S. dependence on Chinese supply.
• With EXIM Bank support and low carbon emissions, the facility represents a strategic move to enhance U.S. national security and industrial independence.

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HyProMag USA (opens in a new tab) has secured a Letter of Interest (LOI) from the U.S. Export-Import Bank (EXIM) for up to $92 million in financing under the “Make More in America” initiative—an aggressive federal push to onshore key industries and break strategic mineral dependencies. The announcement marks a potential turning point for America’s rare earth magnet production capability.

The proposed facility in Dallas-Fort Worth would be the first fully integrated rare earth recycling and magnet manufacturing operation in the United States, leveraging proprietary Hydrogen Processing of Magnet Scrap (HPMS) technology developed at the University of Birmingham (opens in a new tab). If executed as planned, the facility will produce 1,557 metric tons per year of sintered NdFeB magnets and co-products over a 40-year lifespan—enough to partially offset U.S. dependence on Chinese supply.

HyProMag USA enters the scene with a rare combination of federal support, proven technology, and rapid deployment potential. The $92 million Letter of Interest from EXIM aligns directly with President Trump’s Executive Order 2421, aimed at fast-tracking domestic critical mineral projects. Backed by Mkango and CoTec, the project benefits from Hydrogen Processing of Magnet Scrap (HPMS) technology—a mechanical, efficient, and validated process with over $100 million in R&D investment.

With carbon emissions as low as 2.35 kg CO2 per kg of magnet block, the environmental profile is unmatched. Engineering is already well underway, positioning HyProMag USA to be operational within five years, a feat that would be considered light speed in an industry hampered by permitting and scale-up delays.

Still, challenges remain. The 1,557 metric tons per year output, while meaningful, addresses only a fraction of the 10,000+ metric tons demanded annually in the U.S. The facility depends on a steady stream of magnet scrap, and while HPMS solves the recovery puzzle, logistics and volume remain limiting factors. As the first U.S. commercial deployment of this technology, there’s also inherent execution risk.

Yet the strategic upside is considerable. HyProMag USA aims to advance U.S. national security goals by supplying clean, traceable magnets to the defense, electric vehicle (EV), and renewable energy sectors. The project is also export-oriented under the “Make More in America” initiative, offering global competitiveness without dependency on adversarial nations. It brings jobs—90 to 100 skilled roles in a sector that America has all but ceded to overseas competitors. However, threats loom: policy shifts could stall EXIM financing, competitors in China and Europe are rapidly scaling up, and execution delays could erode HyProMag’s first-mover advantage.

Strategic Context

The EXIM support highlights rare earth magnets as a frontline vulnerability in the United States' industrial base. China still dominates more than 90% of global magnet production and has recently imposed restrictive export licensing. In contrast, HyProMag USA represents a deliberate pivot toward allied mineral independence and clean-tech reshoring.

HyProMag’s “short-loop” HPMS approach could complement “long-loop” chemical recycling and conventional mining. With co-location plans in South Carolina and Nevada, the platform could evolve into a multi-state magnet recovery and production network—scalable, modular, and politically aligned with federal industrial policy.

Profile

HyProMag Ltd specializes in the recycling of rare earth magnets, with a particular focus on NdFeB (neodymium-iron-boron) magnets. They utilize a patented process called Hydrogen Processing of Magnet Scrap (HPMS) to recycle magnets from various sources like scrap and redundant equipment. The company is a subsidiary of Maginito Limited (opens in a new tab), which is itself a subsidiary of Mkango Resources Ltd (opens in a new tab). 

Conclusion

The $92 million EXIM LOI is not a guarantee, but it sends a powerful signal: the U.S. is finally acting on decades of warnings about its magnet supply chain. If HyProMag USA executes successfully, it could become the cornerstone of a new domestic rare earth economy—one built on recycling, resilience, and reduced dependency.