United States of America

HyProMag USA is one of the earliest domestic recycling operations advancing toward commercial production, holding a meaningful lead over competitors that remain in earlier development stages. HyProMag USA is owned equally by CoTec Holdings Corp. (TSXV: CTH; OTCQX: CTHCF) and HyProMag Limited, a subsidiary of Maginito Limited and ultimately Mkango Magnetic Materials Limited (AIM/TSX-V: MKA), bringing together proven technology, deep industry expertise, and long-term strategic backing. 

HyProMag USA is positioned to serve high-growth markets, including AI infrastructure, robotics, and electric vehicles, where rare-earth magnet demand is projected to grow at 10%+ CAGR.

HyProMag USA will roll out HyProMag Limited’s patented Hydrogen Processing of Magnet Scrap (HPMS) recycling technology into the United States. The company aims to develop a low-cost, low-carbon, sustainable rare-earth magnet recycling and production business underpinned by HPMS, toward a long-term domestic supply of neodymium/iron/boron (NdFeB) permanent magnets. 

The results of HyProMag USA’s updated bankable feasibility study were announced to the market in June 2026, based on a hub and spoke model using three HPMS vessels and one magnet manufacturing hub in Texas.

Following completion of the Detailed Engineering, CoTec and Mkango will make a joint decision as to whether HyProMag USA will proceed with the construction of the US Project. CoTec is responsible for funding the project development costs. Funding provided by CoTec is in the form of shareholder loans to HyProMag USA.