Aim- and TSX-V-listed rare earth elements and associated minerals company Mkango Resources’ subsidiaries HyProMag and Mkango Rare Earths UK have been named as collaborative project winners of the Driving Research & Investment in Vehicle Electrification (DRIVE35) research and development (R&D) competition – an initiative of the UK Department for Business and Trade (DBT) to support the UK automotive industry through £4-billion of capital and R&D funding.

HyProMag is leading the three-year £6.5-million Rare Earth Automotive Circular Technologies for the UK (REACT UK) project to establish and deliver a full circular UK supply chain comprising recovery, recycling and remanufacturing of neodymium-iron-boron (NdFeB) magnets from end-of-life hybrid and electric vehicles.

The project, being undertaken in a consortium comprising HyProMag, Mkango Rare Earths UK, metals recycling company EMR Group, automotive manufacturer Jaguar Land Rover, specialist alloys company Less Common Metals and the University of Birmingham, will deliver automotive-magnet grades by combining different recycling methods, thereby maximising efficiency and sustainability, while minimising cost, Mkango says.

The UK government will provide £3.2-million, or 49%, of the REACT UK project costs, with the funding from the DBT facilitated through the Advanced Propulsion Centre UK (APC) in partnership with UK innovation agency Innovate UK.

“The projects announced under this latest round of funding demonstrate the UK's determination to lead the shift to zero-emission mobility. By facilitating the UK government's DRIVE35 grants, we are turning world-class innovation into industrial capability,” says APC CE Ian Constance.

“With our partners in DBT and Innovate UK, we are backing manufacturers, empowering small and medium-sized enterprises and strengthening the UK's sovereign supply chain. This multimillion-pound support package is an investment in the technology, people, skills and companies that will define the future of clean transport. We are building the foundations of a competitive, resilient and sustainable automotive industry.”

By combining advanced recycling routes and innovative hydrogen-based processing, the REACT UK project will deliver high-performance automotive magnet grades while improving sustainability, resilience and security of supply, Mkango says.

REACT UK is a significant step forward in supporting the UK's transition to zero-emission mobility, strengthening domestic manufacturing capability and embedding circular economy principles at scale, it adds.

“This innovative project is an opportunity to accelerate development of higher-grade magnets for electric drive motor applications, which complements our existing portfolio of magnet grades,” says HyProMag CE William Dawes.

This project will catalyse a UK supply of magnets for automotive drive motor applications, ensuring cost and sustainability are maximised for different performance requirements. The strong consortium and the developments through the project provide a step-change to the UK's existing rare earths supply chain, says HyProMag MD Nick Mann.

The REACT UK project represents a key milestone in establishing an integrated and resilient rare earth magnet supply chain in the UK, says Mkango Rare Earths UK MD Nielson Beddoe.

By bringing together upstream recycling, advanced materials processing and downstream manufacturing within a single collaborative framework, the project not only accelerates technology development, but also lays the foundation for industrial scale-up.

Mkango's corporate strategy is to become a market leader in the production of recycled rare earth magnets, alloys and oxides. The company also owns the advanced stage Songwe Hill rare earths mining project, in Malawi, and the proposed Puławy rare earths separation plant, in Poland.