Envipro Holdings Inc. has signed an MOU with HyProMag Ltd. of the United Kingdom (hereinafter referred to as "HyProMag") regarding the recycling of rare earth magnets and has begun collaboration with them.

The MOU was concluded because our group is a major metal recycler in Japan, has started recycling NdFeB sintered magnets ("neodymium magnets"), and has a base in the UK.

■Purpose of the Collaboration

-     Joint marketing of HyProMag recycling technology solutions and recycled magnets in Japan

-     Recycling trials to be carried out in UK and Japan on NdFeB scrap supplied by Envipro

-     Analysis of the NdFeB scrap supply market and offtake opportunities in Japan

-     Collaboration on potential HyProMag recycling technology development in Japan

Neodymium magnets are used in wind power generation equipment, drive motors for electric vehicles, compressors for home appliances, and HDDs. Japan is one of the world's leading magnet producers, but the recycling rate is low due to technological and cost issues.

In Japan, permanent magnets, including neodymium magnets, are designated by the government as a specified important material. Rare earths, the raw material for these magnets, are often imported. Through this collaboration, recycled materials will be circulated domestically to promote effective use of limited resources.

Through two approaches, a circular economy supporting manufacturing and a circular economy supporting local community, our group will continue to work to create a system that keeps value circulating.

For more information, please see the following release of Mkango Resources Ltd.
https://mkango.ca/news/2024

■About HyProMag Ltd.

HyProMag is commercialising Hydrogen Processing of Magnet Scrap (“HPMS”) recycling technology in the UK, Germany and United States. HPMS technology was developed 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 – HPMS provides the solution.

Near term milestones for the recycling business include full commissioning of the short-loop HPMS recycling plant in the UK with initial commercial sales of NdFeB by HyProMag targeted for H2 2024, commissioning of the pilot scale (long-loop, chemical route) recycling plant in UK to produce rare earth oxides and carbonates in H1 2024 and completion of the USA Feasibility Study in H2 2024. Initial production in the UK is targeted at 25-30tpa NdFeB with significant expansion potential.

HyProMag’s HPMS recycling technology was selected by the Minerals Security Partnership (“MSP”) for support as one of its key projects. The technology was selected because the MSP determined its strong potential to contribute towards the development of responsible critical mineral supply chains.

The MSP was formed in 2022 by 14 governments and aims to ensure adequate supplies of minerals such as rare earths to meet net zero-carbon goals. It aims to support public and private sector investments building diverse, secure, and responsible global critical minerals supply chains.

■Comments from each company

◆Shinobu Tachibana, Envipro Holdings Inc. NEWSCON INC. UK representative

Envipro Holdings is a global-scale recycling company, developing state-of-the-art-technologies and know-how in the recycling sector. Our goal is to help transform the societies from a linear economy to a circular model. Japan has many industries that use NdFeB magnets in their products, however, recycling of NdFeB magnets has been very limited to date because conventional recycling processes for NdFeB magnets, being de-magnetising, shredding, sorting, and hydrometallurgy, are very costly, inefficient and environmentally unfriendly. HPMS is a revolutionary technology for both recycling and re-manufacturing of NdFeB magnets, which provides solutions for these cost and efficiency challenges. Envipro and HyProMag will collaborate on engagement with potential Japanese customers to further the development of HPMS technology in Japan and adopt it for the recycling of rare-earth materials in their products.

◆Will Dawes, Chief Executive of Mkango Resources Ltd.*

This is the first step in the roll out of HyProMag’s rare earth magnet recycling technology into Japan and other Asian markets, and we are very excited to work with Envipro Holdings. We see Japan as a major growth opportunity for Mkango and HyProMag, given its substantial and longstanding rare earth market presence and strategic alignment with the development of more robust rare earth supply chains and the objectives of the Minerals Security Partnership, of which Japan is a member.

* Mkango has an indirect 79.4% ownership in HyProMag through Maginito.

◆Dave Kennedy, Director of HyProMag Ltd.

Japan has been at the forefront of developments in the application of sintered NdFeB magnet applications since the invention of this magnet type by Sagawa at Sumitomo Special Metals in 1983. Very little end of life recycling has been achieved in the intervening years and we are pleased to be working with Envipro Holdings to unlock the potential for recovering critical resources in Japan.