Mkango Resources’ (AIM:MKA) subsidiaries HyProMag and Mkango Rare Earths UK have been announced as a collaborative project winner of the DRIVE35 research and development competition.
The Rare Earth Automotive Circular Technologies (REACT) for the UK project’s total cost amounts to £6.5 million ($12.38 million) over three years of which £3.2 million or 49% will be funded by the UK Government, as part of the £4 billion DRIVE35 program.
HyProMag’s portion of the project cost totals £3.2 million of which £1.5 million will be grant funded. Mkango’s portion of the project cost totals £2.3 million of which £1.1 million will be grant funded.
By combining advanced recycling routes and innovative hydrogen-based processing, the project will deliver high-performance automotive magnet grades while improving sustainability, resilience, and security of supply.
Mkango says the project is considered a step forward in supporting the UK’s transition to zero emissions mobility, strengthening domestic manufacturing capability, and embedding circular economy principles at scale.
HyProMag CEO William Dawes says the company is excited about the opportunity to expedite development of higher-grade magnets for electric drive motor applications, complementing the existing portfolio of magnet grades.
“This project further cements Mkango’s and HyProMag’s early–mover advantage in the rare earth magnet recycling and manufacturing sector, highlighting its competitive position and strong network of industry and academic partners,” Dawes says.
Delivering a circular economy
REACT UK aims to deliver a full circular economy for rare earth neodymium-iron-boron magnets in the UK automotive sector.
The project will develop technologies to extract these magnets from hybrid and electric vehicle drive motors and make the rotors suitable for downstream extraction of magnets using hydrogen processing of magnet scrap (HPMS) developed at the University of Birmingham.
A rare earth magnet recycling and manufacturing plant has also been developed at Tyseley Energy Park, Birmingham, in conjunction with the University of Birmingham, with initial production underway.
The facility can recover more than 400kg of rare earth alloy per batch using the patented HPMS technology reactor and can produce new sintered magnets from recycled rare earth alloy at a capacity of 100 tonnes per year on a single shift, as this news service previously reported. The facility can also produce more than 300 tonnes annually on multiple shifts.
More recently, Mkango and HyProMag completed the first commissioning runs for a commercial-scale HPMS vessel at a rare earth magnet recycling and manufacturing plant in Germany.
The plant comprises a commercial-scale rare earth sintered magnet recycling and manufacturing line. The plant is fully permitted to produce up to 750 tonnes per year of neodymium-iron-boron magnets and alloys. HyProMag is also targeting a phased scale up to this level over the next three years.
Mkango Resources is a dual-listed company focused on becoming a key player in the production of recycled rare earth magnets, alloys, and oxides.
Write to Aaliyah Rogan at Mining.com.au
Images: Mkango Resources



