HyProMag USA: A Strategic Play in U.S. Rare Earth Magnet Recycling and Manufacturing

The U.S. critical minerals supply chain is undergoing a seismic shift as policymakers and investors prioritize decarbonization, national security, and industrial self-sufficiency. At the forefront of this transformation is HyProMag USA, a company poised to redefine rare earth magnet recycling through its patented Hydrogen Processing of Magnet Scrap (HPMS) technology. With a robust financial model, strategic partnerships, and alignment with the U.S. Defense Production Act (DPA), HyProMag's project represents a high-conviction opportunity for investors seeking exposure to the green energy transition and supply chain resilience.

Technological Edge: A Game-Changer in Magnet Recycling

HyProMag's HPMS technology, developed at the University of Birmingham, offers a paradigm shift in recycling neodymium-iron-boron (NdFeB) magnets. Unlike traditional methods reliant on energy-intensive smelting or chemical leaching, HPMS uses hydrogen gas to demagnetize and break down scrap magnets into a reusable alloy powder. This process achieves over 95% recycled content in new sintered NdFeB magnets while slashing carbon emissions to just 2.35 kg CO₂ eq. per kg of product—a 70% reduction compared to conventional recycling and virgin productionHyProMag USA Rare Earth Magnet Recycling Project^[1].

Recent trials have demonstrated the scalability of HPMS, with the Dallas-Fort Worth facility projected to produce 750 metric tons of recycled magnets annually by 2028HyProMag USA Feasibility Study Demonstrates Robust Economics and the Opportunity to Develop a Major New Domestic Source of Recycled Rare Earths Magnets for the United States^[2]. The technology's modular design allows for rapid expansion: a third HPMS vessel could triple capacity within three years for a relatively modest capital investmentHyProMag USA to Commission Scoping Study to Triple Capacity in the United States^[3]. This agility positions HyProMag to meet surging demand from electric vehicles, wind turbines, and defense applications, where rare earth magnets are indispensable.

Strategic Partnerships: Securing Feedstock and Supply Chain Resilience

HyProMag's success hinges on its ability to secure a steady supply of NdFeB feedstock—a challenge many competitors face. Through a landmark agreement with Intelligent Lifecycle Solutions (ILS), a global electronics recycler, HyProMag has established a “hub-and-spoke” model. ILS's R2-accredited facilities in South Carolina and Nevada will preprocess e-waste, including hard disk drives and wind turbine components, to extract magnet materialHyProMag USA Enters Into Agreement with Global Electronics Recycler Intelligent Lifecycle Solutions for Feedstock Supply and Pre-processing Site Share in South Carolina and Nevada^[4]. This collaboration ensures full traceability from scrap to remanufactured magnets, a critical factor for industries requiring ethical sourcing.

Complementing this is a partnership with Inserma, a Spanish engineering firm specializing in automated magnet separation systems. Inserma's technology streamlines the recovery of NdFeB from complex electronic waste, enhancing HyProMag's operational efficiencyHyProMag USA Project Update for Its Rare Earth Magnet Recycling and Manufacturing Plants in The United States^[5]. Together, these alliances create a closed-loop system that minimizes reliance on foreign supply chains—a strategic imperative in an era of geopolitical tension.

DPA Alignment: A Tailwind for Government and Industrial Backing

HyProMag's project is explicitly designed to align with the U.S. Defense Production Act (DPA), particularly Title III, which incentivizes domestic production of critical materials. By reducing U.S. dependence on China—currently dominating 85% of global magnet manufacturing—HyProMag addresses a key vulnerability in the energy transition and defense sectorsCompanies Set to Boost US Rare Earth Magnet Recycling^[6].

The company's Dallas-Fort Worth hub, expected to create 90–100 skilled jobs, has already attracted attention from federal agencies and private investors. A feasibility study projects a $262 million net present value (NPV) and 23% internal rate of return (IRR) at current market pricesHyProMag USA Feasibility Study Demonstrates Robust Economics and the Opportunity to Develop a Major New Domestic Source of Recycled Rare Earths Magnets for the United States^[2], metrics that underscore its economic viability. With a scoping study underway to expand into Nevada and South Carolina, HyProMag is primed to triple capacity and solidify its role in the DPA's $3.5 billion critical minerals strategyHyProMag USA to Commission Scoping Study to Triple Capacity in the United States Expanding into Nevada and South Carolina^[7].

Financial and Environmental Case for Investment

HyProMag's capital-efficient model and low-carbon footprint make it an attractive proposition for ESG-focused investors. The projected CO₂ savings of 1,780 metric tons annually from its Dallas hub aloneHyProMag USA to Commission Scoping Study to Triple Capacity in the United States^[3] align with corporate net-zero targets, while its modular design allows for incremental scaling without overleveraging.

Conclusion: A High-Conviiction Play in a Strategic Sector

HyProMag USA's confluence of technological innovation, strategic partnerships, and DPA alignment positions it as a leader in the U.S. rare earth magnet recycling industry. As the Biden administration accelerates funding for domestic critical mineral projects and industries pivot toward sustainable supply chains, early investors stand to benefit from a company that is not only solving a technical challenge but also addressing a national imperative. For those seeking exposure to the energy transition's next frontier, HyProMag offers a compelling, capital-efficient opportunity.