Mkango Magnetic Materials Ltd. (AIM/TSX-V: MKA) said HyProMag USA has secured power capacity with Oncor Electric Delivery Company for its planned Texas rare earth magnet recycling and manufacturing hub.
The power allocation covers the initial cutting and finishing operation and the proposed Phase 1 development, with a pathway to additional capacity for Phase 2 through a substation upgrade.
HyProMag USA expects the electricity supplied to the facility to come predominantly from renewable energy sources.
PegasusTSI has started a contractor-selection process for the cutting and finishing facility, while Weston Solutions is progressing permitting activities.
The first stage is targeted for commissioning during the first half of 2027.
That operation will not initially manufacture magnet blocks from recycled material in Texas. Instead, it is designed to cut, finish and qualify NdFeB magnet blocks supplied from other HyProMag Group operations.
The facility is intended to establish US finishing capability, customer qualification processes and workforce training ahead of the larger integrated development.
HyProMag USA plans to operate to recognised magnetic-material and quality standards, including ASTM A977/A977M and systems aligned with ISO 9001.
The larger Phase 1 Texas Hub is targeted for completion in mid-2028. It is designed to produce approximately 550 tonnes per annum of sintered NdFeB magnet blocks and finished magnets, together with around 484 tonnes of co-products, giving approximately 1,034 tonnes per annum of total payable production.
A subsequent Phase 2 expansion envisages approximately 1,048 tonnes per annum of NdFeB magnet blocks and cylinders plus 478 tonnes of co-products, taking total payable production to approximately 1,526 tonnes per annum.
Importantly, those figures are design capacities rather than current production or confirmed future output.
CoTec chief executive Julian Treger said securing power, advancing permitting and commencing contractor selection further de-risk the project and support the goal of establishing a domestic US rare earth magnet supply chain.
For investors, the significance is that the Texas Hub is moving from engineering and planning towards site infrastructure, permitting and contractor procurement.
The next tangible milestones are the award of construction contracts, permitting progress and successful commissioning of the initial cutting and finishing operation in H1 2027, followed by execution of the larger integrated Phase 1 development targeted for 2028.
