Mkango Magnetic Materials is evaluating an expansion of its HyProMag rare-earth magnet recycling and manufacturing facility in Pforzheim, Germany, to as much as 750 tonnes per year, following the project’s designation under the EU Critical Raw Materials Act.
The facility is undergoing commissioning, with initial production capacity planned at approximately 100 tonnes annually of magnets and alloys. Mkango expects that operating additional shifts could raise output to around 350 tonnes per year, while a further expansion to 750 tonnes annually remains under evaluation. The plant is designed to recover and remanufacture neodymium-iron-boron (NdFeB) magnet material from end-of-life products and manufacturing scrap, providing a recycling-based source of permanent magnets for European industrial markets.
Hydrogen Processing Technology and Production Capacity
HyProMag Germany uses Hydrogen Processing of Magnet Scrap (HPMS) technology to separate rare-earth magnets from waste streams and process the recovered material for reuse. The process does not require the material to be fully converted back into separated rare-earth oxides, potentially reducing the number of processing stages compared with conventional recycling routes.
The planned capacity increases would take the facility from its initial 100-tonne annual production target to approximately 350 tonnes through additional shifts, followed by a potential expansion to 750 tonnes per year. The commercial performance of the plant will depend on utilisation rates, material recovery yields, product specifications and the costs associated with increasing production. Securing sufficient scrap feedstock and customer contracts will also be necessary as the operation moves beyond initial commissioning.
EU Strategic Status and Mkango’s Project Portfolio
The EU Critical Raw Materials Act designation adds HyProMag Germany to Mkango’s portfolio of three projects recognised under the European 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 cover primary rare-earth extraction, separation and magnet recycling, forming the basis of an integrated mine-to-magnet strategy.
The German facility is strategically relevant to European supply chains because the region remains heavily dependent on imported permanent magnets and rare-earth processing. NdFeB magnets are widely used in electric vehicles, wind turbines, industrial motors, robotics and electronics.
Commercial Commissioning and Expansion Requirements
The immediate priority for HyProMag Germany is to establish stable commercial production. Strategic-project status does not guarantee financing or product sales, leaving commissioning performance and commercial agreements as key requirements for further development. Mkango must demonstrate that the facility can operate consistently at commercial scale while securing reliable supplies of manufacturing scrap and end-of-life magnet material. Customer contracts and product qualification will also be important to establishing demand for the recovered magnets and alloys.
The decision on whether to proceed with the proposed 750-tonne annual capacity will depend on the results of commissioning, the performance of the HPMS process and the economics of scaling production. The next milestones are stable output, customer qualification and a decision on the further expansion.
