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HyProMag USA LLC has completed pre-feasibility study (PFS) evaluating the potential expansion of its proposed U.S. rare earth magnet manufacturing platform beyond its first plant in Northlake, Texas, which is in detailed engineering, with Phase 1 commissioning expected in mid-2028.
HyProMag is developing advanced rare earth magnet recycling and manufacturing operations to establish a secure domestic U.S. supply chain for neodymium iron boron (NdFeB) magnets, essential components for AI infrastructure, defense systems, robotics, electric vehicles, and advanced electronics.
The PFS evaluates a three-plant phased expansion strategy: three new regional production plants, supported by a centralized manufacturing, finishing and technology hub to produce commercial NdFeB magnet products in the US from both end-of-life recycled feedstock and primary alloy material.
Together with the Northlake Texas facility, the platform targets total salable material production of approximately 6,000 metric tons per year by 2034, an increase of 4,474 metric tons per year above production.
Annual total magnetic material production in 2034 from the company would comprise approximately 4,192 metric tons of magnets, 1,305 metric tons of magnetic NdFeB alloy powder and 503 metric tons of other salable material.
The PFS economics cover the three new plants, including the Central Texas Hub only; they do not include the Northlake Texas Facility, whose value is not included in the PFS results.
The PFS envisions post-tax NPV of $1.85 billion to $2.1 billion for the three new plants, post-tax IRR of 31% to 36% and a profitability index of approximately 2.8x to 3.3x, based on forecast prices and a Class 3 capital cost estimate of approximately $656 million to $623 million respectively, with a payback of 3 years and 2.3 years.
For the first PFS Plant in 2030, the PFS estimates an all-in sustaining cost (AISC) of approximately $41.6 per kg to $37.4 per kg of finished NdFeB products sold.
AISC includes all downstream processing and finishing costs, including plating and epoxy coating. Based on forecast market prices and the forecast product mix, the weighted average realized all-in selling price in 2030 is estimated at approximately $100.5 per kg, supporting strong margins and attractive project returns.
The combined post-tax NPV range of the proposed Northlake Texas Facility and the potential PFS plants is estimated at $2.6 billion to $2.8 billion.
Updated post-tax NPV of approximately $723 million based on forecast prices and a capital cost estimate of approximately $167 million.
“This Pre-Feasibility Study confirms the opportunity to establish a significant domestic rare earth magnet manufacturing platform in the United States,” CEO Julian Treger said in a news release.
“The Study demonstrates robust economics and a pathway to producing higher-value NdFeB magnet products for strategically important sectors including advanced manufacturing, energy, defense and AI-driven technologies,” Treger said.
“Importantly, the platform is designed with the flexibility to utilize primary alloy feedstock alongside recycled materials, providing greater supply chain resilience and supporting long-term operational competitiveness. The results highlight the platform’s potential to create substantial long-term value while strengthening the U.S. rare earth magnet supply chain.”