CoTec Holdings and HyProMag USA Unveil Potential Expansion in U.S. Rare Earth Magnet Capacity

CoTec Holdings Corp. has announced a completed pre-feasibility study by its joint venture, HyProMag USA LLC. The study, conducted by PegasusTSI Inc. and BBA USA Inc., explores the expansion of HyProMag USA's rare earth magnet manufacturing in the U.S., with an aim to quadruple capacity to 6,000 metric tons per year by 2034.

The proposed expansion involves three new regional production plants, complemented by a Central Texas Hub. This strategy seeks to integrate end-of-life recycled feedstock with primary alloy material for neodymium iron boron magnets. Key findings suggest a post-tax NPV up to $2.1 billion, with an IRR ranging from 31% to 36%, and a payback period of 2.3 to 3 years.

This move aims to enhance domestic supply chain resilience, utilize flexible feedstock options, and support low-carbon production methods, filling a critical gap in the U.S. market.