US EXIM Bank Backs HyProMag USA with $92 Million to Boost US Rare Earth Magnet Production
London, UK and Vancouver, BC – June 12, 2024 – CoTec Holdings Corp. (TSXV:CTH)(OTCQB:CTHCF) (“CoTec”) and Mkango Resources Ltd. (AIM:MKA)(TSXV:MKA) (“Mkango”) are delighted to announce a significant milestone for HyProMag USA. The company has received a Letter of Interest for up to US$92 million in financing from the U.S. Export-Import (EXIM) Bank under the “Make More in America” initiative. This substantial investment marks a pivotal moment in bolstering domestic rare earth magnet production within the United States.
Why is this news important? The rare earth magnet market is experiencing rapid growth, driven by demand from electric vehicles, wind turbines, defense applications, and other critical sectors. Currently, the U.S. relies heavily on imports for these essential materials, creating a strategic vulnerability. HyProMag USA's project directly addresses this challenge by establishing a fully integrated, US-based supply chain for rare earth magnets.
The HyProMag USA Project: A Game Changer HyProMag USA is developing a state-of-the-art facility in Magnolia, Arkansas, to produce neodymium-praseodymium (NdPr) magnets – the strongest type of permanent magnet available. The facility will utilize Mkango’s innovative hydrometallurgical process, leveraging rare earth concentrates sourced from Mkango’s Songwe Hill Rare Earth Project in Malawi. This unique approach offers several advantages, including lower environmental impact and reduced reliance on traditional mining and processing methods.
“Make More in America” Initiative: Supporting Domestic Manufacturing The US EXIM Bank’s “Make More in America” initiative is designed to support projects that create jobs and strengthen U.S. manufacturing competitiveness. The Letter of Interest reflects the U.S. government’s commitment to securing critical supply chains and reducing dependence on foreign sources. The financing will be instrumental in funding the construction and initial operation of the HyProMag USA plant.
Benefits for the US Economy The project is expected to generate significant economic benefits, including:
- Job Creation: The facility will create hundreds of high-skilled jobs in Arkansas and surrounding areas.
- Reduced Reliance on Imports: Domestic production will reduce the U.S.’s dependence on foreign sources for critical rare earth magnets.
- Strengthened National Security: A secure domestic supply chain for rare earth magnets is essential for national defense and technological leadership.
- Economic Growth: The project will stimulate economic activity in the Magnolia region and beyond.
Next Steps CoTec and Mkango are working closely with the US EXIM Bank to finalize the financing agreement and commence construction of the HyProMag USA facility. This represents a major step forward in realizing the vision of a secure and sustainable rare earth magnet supply chain for the United States.
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