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(Sharecast News) - Mkango Resources reported significant progress in the construction of its rare earth magnet recycling and manufacturing facility at Tyseley Energy Park in the UK on Thursday.
The AIM-traded firm said the facility, developed in partnership with the University of Birmingham and Mkango's subsidiary HyProMag, was aiming to establish a domestic supply chain for rare earth magnets by integrating innovative recycling technologies with new magnet production.
Initial commercial production was targeted for the end of the second quarter of 2025, subject to infrastructure completion.
Key developments included the full commissioning of magnet alignment presses and the completion of the powder processing plant.
Infrastructure work was said to be advancing, with data, battery, and electrical rooms completed and installation of electrical and gas piping progressing well.
The factory acceptance test for the Hydrogen Processing Magnet Scrap (HPMS) vessel was underway, with shipment from Germany expected by the end of the month.
HPMS pilot production was ongoing, enabling early product deliveries to customers ahead of full-scale operations.
Production capacity was set to scale up in parallel with the commissioning of the commercial plant.
The project had meanwhile received continued support from the UK government, with representatives from the Department for Business and Trade and the Office for Investment visiting the site last month.
Mkango said it expected the facility to play a key role in strengthening the UK's position in the rare earth magnet supply chain while advancing sustainability in magnet production.
"We are pleased with the progress at Tyseley, where we are integrating both new magnet manufacturing and sustainable recycling technologies in collaboration with the University of Birmingham," said chief executive officer William Dawes.
"This facility will play a critical role in strengthening the UK's rare earth magnet supply chain and supporting the country's clean energy transition.
"The visit from representatives of the DBT and Office for Investment reaffirmed the importance of this project in driving forward the UK's advanced manufacturing and critical minerals strategy."
Reporting by Josh White for Sharecast.com.