Below is an EU link on the topic:
Europe is highly dependent on others:
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A foretaste of the trump cards China holds in critical minerals.
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Hypromag USA:lle tarjotaan rahoitusta:
HYPROMAG USA RECEIVES “MAKE MORE IN AMERICA” DOMESTIC FINANCE LETTER OF INTEREST FOR UP TO
US$92 MILLION FROM US EXIM BANK
London / Vancouver: June 12, 2025 – CoTec Holdings Corp. (TSXV: CTH; OTCQB: CTHCF) (“CoTec”) and Mkango
Resources Ltd. (AIM/TSX-V: MKA) (“Mkango”) are pleased to announce HyProMag USA, LLC, a Delaware corporation
(“HyProMag USA” or the “Project”) has received a Make More in America (MMIA) domestic finance letter of interest
(“LOI”) from the U.S. Export-Import (“EXIM”) Bank for its first integrated rare earth recycling and magnet making
facility in Dallas-Fort Worth, Texas.
In terms of the letter, EXIM may be able to consider potential financing of up to $92 million of the project’s costs
with a repayment tenor of 10 years.
Julian Treger, CoTec CEO commented: “We are very pleased with EXIM’s interest in the Project. The Project is
strongly aligned with EXIM’s “Make More in America” initiative, which provides beneficial financing terms for U.S.
companies facing oversees competition to ensure the United States reshores certain critical export areas, including
the domestic manufacturing of permanent NdFeB magnets. We believe that the Project could be a major contributor
to the United States’ targeted permanent magnet independence and the speed at which HyProMag USA’s
capabilities could be deployed distinguishes the Project from potential competitors.”
Will Dawes, Mkango CEO commented: “The HyProMag USA development will be transformational for rare earth
supply chains in the United States, and we are very pleased to see this reflected in the interest from EXIM. With the
detailed engineering phase for the project well underway, HyProMag USA is well positioned to create a major new
domestic hub for recycling and magnet manufacturing, and a platform for further growth in North America.”
The issuance of this LOI is aligned with Executive Order 2421 of March 20, 2025 “Immediate Measures to Increase
American Mineral Production” which includes near-term actions to be determined and implemented by the
agencies to fast-track permits, mobilize capital for mineral producers, and create offtake agreements for strategic
stockpiling for minerals critical to the United States’ defense, technology, and energy.
HyProMag is commercializing Hydrogen Processing of Magnet Scrap (HPMS) recycling technology in the UK,
Germany and the United States. HPMS technology was developed at the Magnetic Materials Group (MMG) at the
University of Birmingham, underpinned by approximately US$100 million of research and development funding,
and has major competitive advantages versus other rare earth magnet recycling technologies, which are largely
focused on chemical processes but do not solve the challenges of liberating magnets from end-of-life scrap streams.
In November 2024, HyProMag announced an independent Feasibility Study which includes a Dallas Fort Worth
recycling and magnet Hub, and two pre-processing facilities located in South Carolina and Nevada respectivelyi
. In
March 2025, HyProMag USA announced the expansion of the detailed engineering phase to include three HPMS
vesselsii and that it was initiating concept studies for further expansion and complementary “Long Loop” recycling
The DFW Hub’s annual production is expected to be 750 metric tons per annum of recycled sintered NdFeB magnets
and 807 metric tons per annum of associated NdFeB co-products (total payable capacity – 1,557 metric tons NdFeB
within five years of commissioning) over a 40-year operating life. It is expected the production facility will provide
significant optionality to supply the U.S. market with additional NdFeB alloy powder while assisting in revitalising
the U.S. magnet sector with the creation of 90-100 skilled magnet manufacturing jobs.
In March 2025, HyProMag USA announced the results of an independent ISO-Compliant product carbon footprint
study which confirmed an exceptionally low CO2 footprint of 2.35 kg CO2 eq. per kg of NdFeB cut sintered block
product.iv
20250610_cotec_mkango_exim_letter_of_interest_final_clean (1).pdf (257,9 Kt)
.
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June 2025 HyProMag Technical Bulletin.pdf (1,3 Mt)
Technical bulletin published on magnet recycling. Commercial production is expected to start this year in the UK and Germany.
3500 magnets manufactured by recycling. ZF Group and GKN Automotive have used and tested these.
Feedback has been positive, with comments stating they are almost of original quality and no differences in performance have been observed compared to the originals.
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MP materials and other companies in the sector have performed really well compared to Mkango.
Probably the biggest blow to those owning Mkango is the funding received by Critical Metals Corp and the subsequent rise in its share price:
The Tanbreez project received practically the exact same funding package as MKA, and the share price rose by as much as 70% in a few days as a result. Of course, it has now returned to its previous level.
A few conclusions can be drawn from this. The US government appears to be funding projects at a rapid pace, so the investment idea seems viable. The EU always follows, but support for MKA’s EU projects with various grants is continuously more likely.
MKA trades terribly due to its London listing. This, of course, creates the possibility that the share value has grown while the price has remained stagnant, so the stock might catch up with the sector with a delay.
Most likely, MKA is currently wondering what the point is for them to list Pulawy & Songhill with a SPAC when the value doesn’t want to materialize due to the LSE listing. It might be sensible to list the entire company on Nasdaq and only then consider spinning off projects into separate companies.
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News from Mkango regarding the listing:
The LOI, which was entered into on 7 January 2025 and amended on each of 23 March 2025, 29 April 2025, and 22 May 2025, contained an exclusivity provision through 30 June 2025, during which time Lancaster Group and CPTK agreed they would not engage in discussions or negotiations with any third party regarding alternative transactions to the proposed merger contemplated by the Business Combination Agreement (the “Proposed Business Combination”). Pursuant to the latest LOI amendment, dated 30 June 2025, Lancaster Group and CPTK extended the exclusivity provision through 3 July 2025 (the “Exclusivity Expiration Date”) in order to provide additional time for the parties to complete negotiation of certain documents ancillary to the Business Combination Agreement.
A much shorter date extension than before, from which one could assume negotiations are in the final stages. The investment story might finally start to become clearer within a week.
Mkango julkaisi aivan äsken ilmoituksen spacista - sen nimestä, alustavasta omistusrakenteesta ja arvostuksesta.
Pitää tutkia tätä tarkemmin kun pääsen illalla töistä kotiin mutta näyttää siltä, että ennen ylimääräisiä anteja yms Spacin alkuperäiset omistajat saavat 6,9 milj osketta ja Mkangon omistajat 40 milj osaketta ja yhtiö tuodaan pörssiin 10 $ kappalehinnalla per osake eli 469 milj usd… Mkangon omistuksen arvo on tuolloin 400 miljoonaa. Osake saattaa romahtaa heti avauksessa mutta vaikka se laskisi heti -90 %… Mkangon nykyinen markkina-arvo on 80 milj usd. Kiinnostavaa nähdä miten osake alkaa treidaamaan markkinan kohta auetessa.
Mkango and Crown PropTech Acquisitions Announce Business Combination Agreement to Create Geographically Strategic Pure-Play Global Rare Earth Platform Owning Songwe Hill and Pulawy Projects
July 3, 2025
- Lancaster Exploration Limited (expected to be renamed Mkango Rare Earths Limited), owner of Mkango’s Songwe Hill Rare Earths Project in Malawi (“Songwe Hill”) and the Pulawy Rare Earth Separation Project (“Pulawy”) in Poland, both designated as strategic projects under the EU Critical Raw Materials Act, will apply for listing on Nasdaq with an aim to become a publicly traded company under the name Mkango Rare Earths Limited (“MKAR”) if the Business Combination closes. Songwe Hill is also supported by the Minerals Security Partnership.
- Songwe Hill and Pulawy together comprise a vertically integrated, pure-play global rare earth platform, with the goal to provide a mined, refined and separated supply of rare earth oxides to supply chains across North America, Europe and Asia.
- Songwe Hill is one of the very few rare earth projects globally to have advanced to a NI 43-101 compliant Definitive Feasibility Study (“DFS”) stage (citation below), with a full Environmental, Social, Health Impact Assessment (“ESHIA”) also completed in compliance with IFC Performance Standards.
- The pro forma value of Mkango’s shareholding in the MKAR Group (excluding its current recycling businesses) pursuant to the Business Combination Agreement is US$400 million prior to transaction expenses and excluding any net proceeds from a PIPE financing and any amounts available from CPTK’s trust account.
- Transaction proceeds will support Mkango Rare Earths Limited’s strategic growth plan, which includes development of Songwe Hill and Pulawy.
LONDON / VANCOUVER: 3 July 2025 – Mkango Resources Ltd (AIM/TSX-V: MKA) (“Mkango”) is pleased to announce that its wholly owned subsidiary, Lancaster Exploration Limited (“MKAR,” to be renamed Mkango Rare Earths Limited) and certain other wholly-owned subsidiaries of Mkango (together with MKAR, “MKAR Group”) have entered into a definitive business combination agreement dated July 2, 2025 (the “Business Combination Agreement”) with Crown PropTech Acquisitions, a Cayman Islands exempted company (OTC: CPTKW) (“CPTK”).
The proposed merger and the other transactions contemplated by the Business Combination Agreement (the “Proposed Business Combination”) would create a publicly traded, vertically integrated, global pureplay rare earths platform, comprised of Songwe Hill and Pulawy under the name “Mkango Rare Earths Limited,” and its ordinary shares are expected to trade on Nasdaq.
Completion of the Proposed Business Combination is subject to a number of conditions, including but not limited to, the approval of a Nasdaq listing application, approval by Mkango as shareholder of MKAR, approval by the shareholders of CPTK, approval by the TSX Venture Exchange (“TSX-V”), and the satisfaction or waiver of other closing conditions. There can be no assurance that the Proposed Business Combination will be completed as proposed or at all.
Mkango’s interest in its recycling businesses is not contemplated as part of the Proposed Business Combination. It is expected that a meeting of Mkango’s shareholders will be called to approve both the transaction and a name change for Mkango, to be effective on completion of the Proposed Business Combination.
The pro forma value of Mkango’s shareholding in the MKAR Group pursuant to the Business Combination Agreement is US$400 million prior to any reduction for transaction expenses including any repayment of the BCA Note and F-4 Note described below and does not include any net proceeds from a PIPE financing and any amounts available from CPTK’s trust account. Mkango is expected to retain a significant majority equity interest in MKAR, with final ownership determined at closing based on any conversion of the BCA Note and F-4 Note, the amount of SPAC redemptions, any securities issued pursuant to a private placement financing (“PIPE Financing”) and other closing adjustments.
Alexander Lemon, President of Mkango, commented: “We are excited to announce the signing of a transformative Business Combination Agreement with CPTK, which I believe marks a pivotal step towards unlocking substantial shareholder value. This transaction is expected to significantly accelerate the growth trajectory of the Mkango group and position us as a key player in the global rare earth supply chain, with a strong emphasis on sustainability and critical industry demand. Partnering with CPTK, an organization that shares our strategic vision and values, enhances our platform for scalable growth and innovation. As we move towards a Nasdaq listing, we believe this combination will catalyse new opportunities, broaden our investor base, and drive long-term value creation.”
Michael Minnick, CEO of CPTK, added: “We are excited to continue progressing this transaction forward. Based on the significant milestones achieved to date, we believe MKAR is uniquely-positioned to become an important provider of not only rare earth carbonates via its mining site in Malawi, Africa, but also a provider of rare earth oxides through its planned separation facility in Pulawy, Poland. This vertically integrated approach, we believe, will distinguish MKAR.”
Pursuant to a previously announced note purchase agreement between MKAR, one of CPTK’s sponsors, and an affiliate of another sponsor of CPTK, US$500,000 was funded upon the execution of the Business Combination Agreement in exchange for a convertible promissory note (the “BCA Note”), with an additional US$250,000 to be funded (collectively with the US$500,000 investment, the “Sponsor Investment”) upon the initial public filing of a registration statement on Form F-4 with the U.S. Securities and Exchange Commission (the “SEC”) for the Proposed Business Combination in exchange for a convertible promissory note (the “F-4 Note”). The TSX-V has conditionally accepted the BCA Note issuance, subject to satisfaction of customary closing conditions. The Sponsor Investment will cover certain of MKAR Group’s general corporate expenses related to the Proposed Business Combination.
MKAR’s goal with Songwe Hill and Pulawy is to provide a mined, refined and separated sustainable supply of rare earth oxides to supply chains across North America, Europe and Asian markets. Songwe Hill is a Minerals Security Partnership supported project, and both Songwe Hill and Pulawy have been recently designated as Strategic Projects under the European Union Critical Raw Materials Act (“CRMA”), as both have been assessed by the EU to be highly important to the EU’s supply security of strategic raw materials and possess viable technical feasibility within reasonable timeframes. Accordingly, both are expected to benefit from coordinated support from the EU Member States and financial institutions, in particular, in terms of access to financing and connections with future off-takers.
Songwe Hill is one of the very few rare earth projects globally to have advanced to the NI 43-101 compliant DFS stage, with an approved ESHIA also completed in compliance with IFC Performance Standards. A mining development agreement was signed with the Government of Malawi in July 2024.
Pulawy is expected to be underpinned by the sustainable supply of a purified rare earth carbonate from Songwe Hill and is also expected to process rare earths from other sources. As an EU-based project, Pulawy is expected to provide cross-border benefits, including for downstream sectors. The project is also expected to benefit from expedited permitting processes as a Strategic Project under the CRMA. Poland, as an EU Member State Government, is responsible for ensuring that Pulawy obtains relevant permits within the CRMA’s timelines, which provide that permitting processes will not exceed 15 months for processing/refining projects.
Proposed Business Combination Overview
The Proposed Business Combination implies a pro forma valuation of Mkango’s shareholding in MKAR of US$400 million, excluding the effects of MKAR’s indebtedness, closing cash, and transaction expenses (the “BCA Valuation”) and any net proceeds from a PIPE financing and amounts remaining in CPTK’s trust account.
Pursuant to the Business Combination Agreement, MKAR is obligated to effect a share split that is expected to result, based on current assumptions, all of which are subject to change, in Mkango holding approximately 40,000,000 outstanding ordinary shares of MKAR at the closing of the Proposed Business Combination, calculated using the BCA Valuation at an implied value of US$10 per share, with CPTK’s initial shareholders expected to hold 6,900,000 ordinary shares of MKAR. Additionally, the principal and accrued and unpaid interest of the convertible promissory notes issued pursuant to the Sponsor Investment, which includes the BCA Note issuance, will convert immediately prior to the consummation of the Proposed Business Combination (the “Standard Conversion”) into twice the number of ordinary shares of MKAR to which such dollar amount would equate based on the implied dollar value of Company shares in the Proposed Business Combination (the “Proposed BCA Valuation”), which shares would be held by one of CPTK’s sponsors and the affiliate of another CPTK sponsor. Alternatively, if CPTK satisfies certain cash thresholds at the time of the Proposed Business Combination, the noteholders may opt to have any portion of such principal and interest repaid in cash as well as convert into half the number of shares to which such dollar amount would equate based on the Proposed BCA Valuation, with the balance of the promissory notes, if any, converting pursuant to the Standard Conversion. In addition, ordinary shares of MKAR may be issued pursuant to a PIPE Financing, if any, at the closing of the Proposed Business Combination.
Additionally, outstanding warrants of CPTK, which include approximately 9.2 million public warrants and 5.0 million private placement warrants, will become exercisable for ordinary shares of MKAR (such warrants, the “Warrants”) pursuant to the CPTK Warrant Agreement which will be assigned and assumed by MKAR as a condition to the closing of the Proposed Business Combination. The public warrants will contain the same general terms and conditions of the CPTK warrants, including a five-year term, a cash exercise price of US$11.50 per share, subject to adjustment, and are redeemable for $0.01 per warrant upon 30 days’ notice if the closing price of the underlying shares equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending three business days before the redemption notice is sent to the warrant holders. The private warrants are identical to the public warrants except they are not redeemable and have a cashless exercise feature.
The applicable boards of directors of MKAR Group and CPTK have unanimously approved the Proposed Business Combination, which is expected to be completed in the fourth quarter of 2025, subject to, among other things, the approval of a Nasdaq listing application, approval by Mkango as shareholder of MKAR, approval by the shareholders of CPTK, approval by the TSX-V, and satisfaction or waiver of the other conditions set forth in the Business Combination Agreement. MKAR is not obligated to close the Proposed Business Combination if, pursuant to the Business Combination Agreement, CPTK’s available net cash, including new funds raised from investors and following redemptions by CPTK’s public shareholders, would be less than US$5,000,000 at closing.
Pursuant to a Shareholder Support Agreement executed concurrently with the Business Combination Agreement (the “Shareholder Support Agreement”), Mkango agreed to vote in favor of the Proposed Business Combination and take actions to support its consummation. The Shareholder Support Agreement also restricts the transfer of Mkango’s shares of MKAR and prohibits the initiation of any claims that could delay or impede the Proposed Business Combination. Pursuant to a Sponsor Support Agreement executed concurrently with the Business Combination Agreement (the “Sponsor Support Agreement”), CPTK’s sponsor and certain other investors in CPTK have agreed to vote in favor of the Proposed Business Combination and take actions to support its consummation. The Sponsor Support Agreement also restricts the transfer of the parties’ shares of CPTK, includes provisions for escrow and potential earnout of a portion of the shares of MKAR to be obtained by CPTK’s sponsor, and contains waivers of certain rights and claims related to the Proposed Business Combination.
Net proceeds from the Proposed Business Combination are expected to support MKAR Group’s strategic growth plan, which includes development of Songwe Hill and Pulawy.
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Good week for Mkango. The SPAC is progressing while the Malawi mining project seems to be advancing in the background. Apparently, Mkango has entered into an off-take agreement for the mine’s future production.
https://mwnation.com/govt-hails-firms-off-take-pacts/
quote: “In mining and project financing, an off-taker is a party that agrees to purchase the goods or services produced by a project. An off-take agreement provides a guaranteed market for the outputs of the project.
“This is good for project financiers because it reduces project risk.”
Mkango’s stock has performed quite commendably since the SPAC valuation was announced. You have to love the British market when a company announces that it will soon have a liquid asset on its balance sheet that is, in the best case, five times more valuable than the company’s market capitalization, and no one buys the stock. 
An easy place to draw your own conclusions.
In my opinion, it is irresponsible to assume that the upcoming SPAC – named MKAR – would start trading at a valuation of $10 per share. However, there’s no need to do that at this point, as that scenario would mean Mkango’s stock trading at 90 pence, which is 3x the current price and 6x the opening price of the stock since the company’s Thursday announcement. Most likely, there will also be a small spread between NAV and the price.
At this point, I can still assume that the market has not fully priced in the SPAC and believe the stock price will rise as a result.
Recycling technology and future cash flows are not yet given any value at this point, even though they are the backbone of the case. They are also progressing nicely in the background, with Hypromag USA having secured financing, not to mention the financing opportunities that leveraging MKAR brings.
So far, the case has progressed far too smoothly.
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Tutkittuani Mkangon ja Crown Prophetin raportteja iltapäivän olen saanut jonkinlaisen käsityksen maaleista ja aikamääreistä joihin pitää päästä jotta MKAR:n listaus onnistuu. Raportit ovat kuitenkin vaikeaselkoisia enkä ole aivan varma mikä tulee olemaan MKAR:n lopullinen osakemäärä ja omistusrakenne.
Ensinnäkin oma osaamiseni on tässä aivan äärimmäisyyksiin vedetty sillä en ole ollut ikinä SPACissa mukana. Perinteisesti SPAC on kuoriyhtiö, joka listautuu pörssiin tarkoituksena kerätä sijoittajilta pääomaa joka sijoittaa järjästäjän etsimään - yleensä yksityiseen yhtiöön. Jos SPAC ei löydä yhtiötä mihin fuusioitua rahat palautetaan sijoittajille. Vuonna 2021 Crown PropTech Acquisitions oli Nasdaqiin listattu kuoriyhtiö jonka oli tarkoitus yhdistyä kiinteistöille ohjelmistoja tarjoavaan yhtiöön - Brivoon. Yhdistymistä ei kuitenkaan saatu läpi ja SPAC likvidoitiin ja siirrettiin alempaan pörssiin; OTC expert.
Vaikka Mkangon julkaisuissa puhutaan SPACista tämä ei siis ole perinteinen SPAC-transaktio. Kyseessä on niin sanottu reverse merger. Julkinen yhtiö ei siis fuusioidu yksityisen kanssa vaan toisinpäin - yksityinen julkisen kanssa.
Niinpä tilanne on jokseenkin monimutkainen. Jotta transaktio menee läpi sekä fuusio, että listaus Nasdaqiin pitää tehdä samalla. Pitää hypätä samalla kahden esteen yli.
Kysymys kuuluu miksi näin eikä Mkango ostanut esim jotain epäonnistunutta biotekkiyhtiötä nassesta saadakseen siellä valmiiksi listatun kuoriyhtiön?
Uskoisin, että syy tähän on kaupan neuvonantaja Cohen & Company Capital Markets. Cohen oli neuvonantajana keväällä listautuneelle USA Rare Earthille. Oli varmasti luonnollista valita neuvonantajaksi entiteetti joka oli juuri tehnyt samanlaisen transaktion. Cohenilla saattoi olla myös yhteyksiä Crown Prophetiin? Sitä en osaa kuitenkaan perustella tarkemmin.
Lähteet
Crown Prophet 8-K:
http://pdf.secdatabase.com/219/0001213900-25-061254.pdf
Mkango Material documents/Business combination agreement ( se suurin tiedosto). Linkki sedariin: https://www.sedarplus.ca/csa-party/viewInstance/view.html?id=0c11f8b7998bcd9607aaf7a743c7523ca1f2abb0e7ddb666#scrollTop
Tärkeimmät maalit sekä aikamääreet:
- Kaikki osakkeenomistajat hyväksyvät kaupan.
- Viranomaishyväksynnät.
- Nashdaq listaus hyväksytään.
- Yhtiö saa sovittua rahoituksen PIPE sopimuksella tai vastaavalla tavalla. Hakusana “Permitted Financing”.
31.8 mennessä Mkangon pitää tarjota Crown Prophetille Feasibility Study koskien projekteja sekä heidän on tarjottava SEC:lle edellisen kahden vuoden talousluvut.
30.11 “ Outside date”. Jos transaktio ei ole tähän mennessä mennyt läpi niin kumpi tahansa osapuolista voi irtautua siitä.
Omistusrakenne on vaikea ymmärtää. Yhtiön torstaisessa julkistuksessa puhutaan, että Mkangon omistusosuus tulee olemaan noin 400 milj arvoinen ( 40 milj osaketta x 10 $ hinta. ) ja Crown Prophetin omistajien osuus 6,9 milj osaketta. Warrantteja olisi 14.2 milj.Tämä viittaisi siis 40 milj + 6,9 milj + 14.2 = 61,1 milj osakekantaan. Kuitenkin business combination rapsassa puhutaan paljon suuremmasta osakemäärästä.
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I can’t really dig up more information on this SPAC situation. It’s an unfamiliar area for me too. I’ll just have to follow future announcements. However, it seems positive, and the advisors seem good, having previously guided similar industry projects through.
A new announcement has come from the recycling side again:
So, commercial-scale production has begun, and the first batches have been processed in the UK using the HPMS method.
Starting with 0.5 tonnes per month and increasing to a minimum of 2 T per month by the end of 2025. 2026 potential +100 tonnes per year.
Let’s hope the scaling succeeds and customers are satisfied.
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All the necessary information would be in those reports. You just have to dig them out. All that’s needed is CTRL + F, Chat GPT, coffee, and a little sense of adventure 
.
It would be good to have some idea of what Mkango’s share value will actually be. I have now concluded that there will be 40 (Mkango ownership) + 6.9 (Crown Prophet ownership) + 14.2 (warrants) + a private investment to meet the “Permitted financing” clause’s requirement of at least 25.75 million USD. Private investments are often made below market value, so the shares will likely be obtained at a price below $10 unless demand is very high.
I don’t believe that, as only someone with extremely creative thinking would consider a plot of land in Malawi and Poland to be worth close to a billion, especially when it still swallows a few hundred million in investments. This is riding very heavily on USAR’s investment success. Therefore, its stock might be a good barometer for whether MKAR will trade at $10 per share on the first day or if the stock will immediately drop by 90%. SPACs tend to have quite poor success immediately after listing. However, the market seems to be quite hot around the sector, and more positive news is constantly emerging.
On paper, recycling technology seems really interesting, but I personally don’t give it any value because large-scale production is still very far off, if it happens at all. For me, this is an unholy combination of pure speculation and a special situation.
Regarding MKAR, in its first few months, there doesn’t seem to be selling pressure from Mkango’s or Crown Prophet’s perspective. Here are the lock-up dates:
SPAC Sponsors and SPAC Holders Shares:
(a) 33% released 3 months after the agreement date
(b) 33% released 6 months later
(c) 34% released 9 months later
Company Holders (i.e., former Mkango ownership):
(d) 33% released 12 months later
(e) 33% released 18 months later
(f) 34% released 24 months later
Recent CEO interview:
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MP Materials agrees to a deal with the Department of Defense that can be described with a clear conscience as revolutionary, for MP but also for other players in the sector, as it sets the direction for where the sector is headed.
-DoD makes a direct $400 million investment in the stock.
-JP Morgan and Goldman offer a loan.
-The company gets a floor price for its production.
The company’s stock is up a light 50% after the news.
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Great! This dependency on China should have been reduced ages ago.
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It might be interesting to read a slightly more extensive account of the background and ownership structures of the agreement made by MP Materials and the Department of Defense. Below is an excerpt from the article mentioning last week’s news.
The Defense Department will become the largest shareholder in rare-earth mining company MP Materials by buying $400 million of its stock and helping it build a new processing facility to sidestep the Chinese market, the company said Thursday. The deal underscores how far the Trump administration is willing to go to subsidize production of high-powered magnets, a field dominated by Chinese firms although the materials are critical for U.S. weapons systems.
Las Vegas-based MP Materials owns the only rare-earth mine in the United States, at Mountain Pass, California, near the Nevada border. MP Materials CEO Jim Litinsky said the company aims to restore the full rare-earth supply chain in the U.S. and eliminate a ‘single point of failure’ in the country’s military-industrial base.
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Here is a link to MP’s call where the event is discussed in more detail. https://investors.mpmaterials.com/events-and-presentations/events-calendar/event-details/2025/MP-Materials-Special-Event-Investor-Call--A-Transformational-Public-Private-Partnership-2025-XtviEbs_Pj/default.aspx
The Department of Defense has committed to purchasing 7,000 tons of magnets produced by the 10X facility annually, which significantly exceeds its normal needs, suggesting preparations for an emergency state, but also aiming to guarantee the needs of local industry.
Here’s a quote from the CEO: “I think both the Department of Defense and MP
believe that there is quite significant upside to that minimum, which we believe would
come from syndicating much of that volume out to commercial customers once we have
ensured the DOD’s needs are satisfied.”
It is also directly mentioned later that in a normal situation, the Department of Defense allows most of the magnets to flow to industry, but during wartime, they will take a larger share of the flow for their own use.
Also mentions of production outside MP:
"As it relates to your question and comments on heavy growth feedstock, as you saw from some of the features of this announcement, there will be further investment in Mountain Pass for heavy rare earth separation… Mountain Pass really as a refiner of choice in the Western world, to bring to bear the various feedstocks that are out there that can’t support the economics of building out a full point solution for refining on their own.”
Analyst: " I’m sort of just just just curious if you’re envisioning, you
know, in in conjunction with the DOD, if there is going to be an increase in in available
third party feed in The United States to maybe help you bridge some gaps should you
need some, you know, additional content?"
CEO: “Sure. Well, for sure, being the only refiner in the Western world means that we are the
logical home for third party feeds around the world. And, you know, again, obviously,
from a refining standpoint, there’s there’s two choices. There’s the Chinese sphere of
influence or there’s MP. And so I I think that puts us in a really good position, and I think
part of the goal of this transaction is is making sure that MP is, you know, is positioned
strong as a national champion with the economic platform, to really have the firepower
to build this out. And so I do think that there’s gonna be a lot of growth opportunities.
And part of this agreement, it was part of the discussion throughout, but we expect to
continue to collaborate with DOD on sourcing. I mean, that’s a that’s a a big part of
this. And so we now have, I think, couldn’t get any better as far as a partner and large
shareholder. So we’re really excited about that, and we expect to continue to collaborate
with DoD in growing out this supply chain.”
Demand in the United States:
The US share of the global NdFeB magnet market is approximately 10–15%.
Sources:
- Adamas Intelligence
Rare Earth Magnet Market Outlook to 2035
→ https://www.adamasintel.com/ - US Geological Survey (USGS), Mineral Commodity Summaries 2024
Rare Earths Summary
→ https://pubs.usgs.gov/periodicals/mcs2024/mcs2024-rare-earths.pdf - International Energy Agency (IEA), The Role of Critical Minerals in Clean Energy Transitions (2021)
→ https://www.iea.org/reports/the-role-of-critical-minerals-in-clean-energy-transitions - U.S. Department of Energy (DOE), 2023 Critical Materials Assessment
→ https://www.energy.gov/eere/amo/2023-critical-materials-assessment
There is a risk that once the 10X facility is completed, there will be overproduction in the US market, or another potential risk: that MP will gain a complete monopoly in the sector. However, it is the entity with the largest scale and financial stability.
However, that does not appear to be the government’s plan:
“The U.S. Department of Defense plans to continue investing in critical minerals projects to ensure a diverse American supply of the building blocks for weapons and many electronics, a defense official told Reuters on Tuesday.”
The rest of the world has also woken up to the situation.
https://www.mining.com/web/japan-eu-to-explore-joint-rare-earths-procurement-nikkei-reports/
MP is unlikely to build production outside the United States anytime soon, as their hands are full with 10X and other commercial agreements.
Thus, there is a vacuum at this point that can be filled by a number of companies with functional technology.
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Cotec ja Mkango julkaisivat yhteistyösopimuksen Intelligent Lifecycle Solutions yrityksen kanssa.
Hypromag USA Enters Into Agreement With Global Electronics Recycler, Intelligent Lifecycle Solutions, for Feedstock Supply and Pre-Processing Site Share in South Carolina and Nevada
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Top White House officials told a group of rare earths firms last week that they are pursuing a pandemic-era approach to boost U.S. critical minerals production and curb China’s market dominance by guaranteeing a minimum price for their products, five sources familiar with the plan told Reuters.
The previously unreported July 24 meeting was led by Peter Navarro, President Donald Trump’s trade advisor, and David Copley, a National Security Council official tasked with supply chain strategy. It included ten rare earths companies plus tech giants Apple AAPL.O, Microsoft MSFT.O and Corning GLW.N, which all rely on consistent supply of critical minerals to make electronics, the sources said.
Navarro and Copley told the meeting that a floor price for rare earths extended to MP Materials earlier this month as part of a multibillion-dollar investment by the Pentagon was “not a one-off” and that similar deals were also in the works, the sources said.
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I decided to try new parameters for ChatGPT, and it found a good deal of information. I decided to utilize it especially for the area I was most in the dark about - understanding Mkango’s technology and its economics.
Here is an analysis, sources, and two different NPV scenarios for HyProMag USA. The feasibility study used a 7% discount rate, which I believe is far too low for such a risky project. I kept it unchanged in the comparison presented at the end to make it easier to compare with the feasibility study. However, here is a scenario of what would have been achieved if a reasonable discount rate had been used; I’ve grown fond of using 12% for projects. No particular rule as to why.
The US government informed industry players a week ago in a meeting that the state will continue to support the sector even after the MP agreement. Since the state supported the previous company with a price floor, the best target to model is how this would affect HyProMag USA’s profitability.
Hydrogen-based Recycling Cost Curve: Mkango’s HyProMag (HPMS, Hydrogen Processing of Magnet Scrap)
1. Process Description and Technological Foundations
The HPMS process (hydrogen decrepitation) breaks down used NdFeB magnets (neodymium-iron-boron) with low-pressure hydrogen (~1–9 bar) at room temperature. The result is a metal alloy powder without solvents or high-temperature stages.
The technology was developed at the University of Birmingham’s Magnetic Materials Group with over $100 million in research funding and is exclusively licensed to HyProMag. Operations are in the UK, Germany, and the USA.
2. Economic Parameters (HyProMag USA – Feasibility Study)
Market Price-based Baseline Data:
Initial Investment (CapEx): 125 million USD (includes 10% contingency; AACE Class 3)
Annual Capacity:
750 tons of sintered NdFeB material + 291 tons of by-products → total approx. 1,041 tons/year
Operating Cost (AISC): approx. 19.60 USD/kg
(market price approx. 55 USD/kg → gross margin ~65 %)
Payback Period:
~3.9 years (at current prices),
~3.1 years (at forecast prices)
Valuation (discounted):
NPV (after tax): 262 M USD (IRR ~23 %)
At forecast prices: 503 M USD (IRR ~31 %)
Discount Rate: 7 % (real)
3. Cost Curve and Economies of Scale Analysis
** Marginal Cost:**
The only major costs are hydrogen and electricity; no acids, chemical separations, or multi-stage purification.
Scalability:
Cost of one additional reactor approx. 7 million USD → capacity expansion possible with a small additional investment.
Carbon Footprint:
Recycled magnets cause approx. 95% less CO₂ emissions than mining-based supply chains → ESG benefits.
4. Comparison to Alternative Technologies
Chemical-based separation methods (e.g., Cyclic Materials, Ionic Technologies) require acid treatment, purification, and reclassification. These are more expensive, complex, and less direct production pathways.
Hydrogen decrepitation + spark plasma sintering has achieved properties in SmCo magnets that match or exceed original magnetic values.
Techno-economic reviews show the HPMS method to be significantly lower in chemical and energy consumption compared to traditional methods.
6. Academic and Techno-Economic Findings
NdFeB/SmCo powders produced by the HPMS process retain or exceed original magnetic properties (~1,500 kA/m coercivity, energy content 43 kJ/m³).
A 2023 analysis estimated that recycling could cover up to 20% of global NdFeB demand in 10 years, provided logistics operate efficiently.
Life cycle analyses (LCA) show that HPMS significantly reduces emissions, water consumption, and waste streams compared to chemical-based solutions.
7. Summary
Hydrogen-based magnet recycling is one of the lowest-cost and lowest-carbon footprint solutions for NdFeB magnet reuse.
At the current ~19.60 USD/kg AISC level and ~55 USD/kg market price, a margin of approx. 65% and a payback period of 3–4 years are achieved. Scaling is cost-effective, unlike chemical processes.
Sensitivity Analysis: If the market price is 110 USD/kg, meaning the US government also guarantees Mkango’s production the same price floor as for MP Materials.
Assumptions:
Capacity: 1,041,000 kg/year
AISC: 19.60 USD/kg
CapEx: 125 M USD
Tax Rate: 21 %
Project: 40 years
Discount Rate: 7 % (real)
Calculations
Revenue: 1,041,000 × 110 = 114.5 M USD/year
Costs: 1,041,000 × 19.6 = 20.4 M USD/year
Operating Profit: 94.1 M USD
Taxes: 19.8 M USD
Net Cash Flow: 74.3 M USD/year
NPV Calculation
NPV ≈ 74.3M × 1–(1+0.07)−401–(1+0.07)−40 / 0.07 ≈ 74.3M × 13.80 ≈
≈ 1.026 billion USD
IRR and Payback
IRR: ~45–48 %
Payback: 125M / 74.3M ≈ 1.68 years
Sources
1. Company-Specific and Technical Sources – Mkango / HyProMag
- Mkango Resources Ltd – HyProMag USA Feasibility Study (Dec 2024)
mkango.ca – PDF (EPCM) - HyProMag USA – Feasibility Summary & IRR/NPV Data (May 2025)
hypromagusa.com – Newsroom - Mkango Corporate Overview (includes HPMS process)
mkango.ca – Projects Overview - Mkango – Songwe Hill DFS and Technoeconomic Model
Mkango – 2022 Management Discussion & Analysis (PDF)
2. Technology and Process Mechanics – Use of Hydrogen in NdFeB Magnet Disintegration
- University of Birmingham – HPMS Technology Origin & IP
University of Birmingham – Recycling Technologies - EPJ Applied Physics – Hydrogen Decrepitation Studies (2019)
epjap.org – Open Access Article - MDPI Energies – Hydrogen- and Plasma-Assisted NdFeB Regeneration (2023)
mdpi.com – Energies Journal Article - arXiv – Spark Plasma Sintering & Magnet Recovery
arxiv.org – Open Physics Archive
3. Comparative Costs, Competitors, and Life Cycle Analysis
- JOM Journal – Techno-Economic Review of Rare Earth Magnet Recycling (2021)
Springer – Journal of Materials - ScienceDirect – Rare Earth Recycling & Sustainability Metrics (2024)
ScienceDirect – Resources, Conservation & Recycling - MDPI Sustainability – Circular Economy of REEs
MDPI – Sustainability Journal
4. Market Price & Industry Media
- Metal News – HyProMag UK Starts Commercial Production (July 2025)
metal.com – News Article - Rare Earth Exchanges – ESG & Policy Signals for HPMS
rareearthexchanges.com – Industry Insight - Financial Times – Competitive REE Tech Commentary (2023)
ft.com – Materials Technology Analysis
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Excellent article which discusses industry dynamics as well as a number of listed companies.
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