Mkango Magnetic Materials is assessing an expansion of its HyProMag rare-earth magnet recycling and manufacturing facility in Germany to as much as 750 tonnes per year, following the project’s designation under the EU Critical Raw Materials Act.
The facility in Pforzheim is currently being commissioned and is designed to recover and remanufacture neodymium-iron-boron (NdFeB) permanent magnets from end-of-life products and manufacturing scrap. The development could strengthen Europe’s domestic supply of recycled magnet materials, which are essential to several industrial and clean-energy technologies.
German Facility Plans Three Stages of Capacity Growth
HyProMag’s initial production target is approximately 100 tonnes of magnets and alloys annually. By introducing additional operating shifts, Mkango estimates that output could increase to around 350 tonnes per year. The company is also evaluating a further expansion that would raise annual capacity to approximately 750 tonnes. The proposed increase would depend on successful commissioning, operating performance and commercial demand.
The facility uses Hydrogen Processing of Magnet Scrap (HPMS) technology, which enables rare-earth magnets to be recovered from waste streams and processed for reuse without requiring the material to be fully converted back into separated rare-earth oxides. This approach could reduce the number of processing stages compared with conventional recycling methods. Its commercial benefits, however, will depend on recovery yields, production consistency and the cost of operating at higher volumes.
Recycling Technology Targets Europe’s Magnet Supply Gap
The project addresses Europe’s dependence on imported permanent magnets and rare-earth processing capacity. NdFeB magnets are widely used in electric vehicles, wind turbines, industrial motors, robotics and electronic equipment. Recovering magnets from discarded products and manufacturing waste offers an additional source of material alongside newly mined rare earths. Expanding domestic recycling could also help European manufacturers diversify their supply chains. For Mkango, HyProMag provides a route into the European magnet market without relying exclusively on the development of new mining operations.
Mkango Builds an Integrated Rare-Earth Strategy
HyProMag Germany is one of three Mkango projects recognised under the EU strategic-project framework. The other two are the Songwe Hill rare-earth project in Malawi and the proposed Puławy separation plant in Poland. Together, the projects outline a strategy spanning primary rare-earth extraction, material separation and magnet recycling.
The portfolio could give Mkango exposure to different stages of the rare-earth value chain, although each project has its own development requirements and commercial risks. Strategic designation supports their policy relevance but does not automatically secure construction funding, operating approvals or customer contracts.
Commissioning and Customer Demand Remain Critical
The immediate priority for HyProMag is to demonstrate stable commercial production. The facility must establish reliable operating performance, secure sufficient supplies of suitable scrap and qualify its products with customers. The economics of expanding from the initial 100-tonne annual capacity towards several hundred tonnes will depend on plant utilisation, recovery rates, product specifications and the costs associated with increasing production. A larger facility would also require sufficient market demand to absorb additional output. The EU designation may support the project’s strategic position, but it does not guarantee financing or sales.
Next Milestones for HyProMag Expansion
The key milestones are successful commissioning, consistent production, customer qualification and a decision on whether to proceed with the proposed 750-tonne-per-year expansion. If the facility demonstrates reliable performance and secures adequate feedstock and customer demand, HyProMag could become a significant source of recycled rare-earth permanent-magnet material in Europe. For Mkango, the project represents an opportunity to develop commercial magnet production and recycling capacity while complementing its wider rare-earth portfolio.
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