Mkango Secures UK Funding to Advance Circular Rare Earth Magnet Supply Chain

Mkango (LSE:MKA) has secured UK government backing through the £4 billion DRIVE35 programme, with its subsidiaries HyProMag and Mkango Rare Earths UK awarded £2.6 million in grant funding. The support forms part of the £6.5 million, three-year REACT UK consortium, which aims to establish a fully circular domestic supply chain for recycled neodymium-iron-boron magnets used in automotive applications.

The initiative is being led by HyProMag in collaboration with key partners including Jaguar Land Rover, EMR, Less Common Metals, and the University of Birmingham. The project will integrate advanced recycling technologies with hydrogen-based processing methods to extract magnets from end-of-life electric and hybrid vehicles, before converting them into high-performance drive motor magnets. This approach is expected to strengthen domestic supply chain resilience while reinforcing Mkango’s early leadership in rare earth magnet recycling.

In addition, a separate grant facilitated by the Advanced Propulsion Centre will support a feasibility study focused on expanding magnet manufacturing capacity at the Tyseley site. This further aligns with Mkango’s strategy to build a scalable industrial base in the UK for zero-emission vehicle technologies.

Collectively, these developments enhance Mkango’s position across the value chain—from upstream recycling and materials processing to downstream magnet production—placing the company at the forefront of efforts to secure sustainable rare earth supplies for electric vehicles and broader clean energy applications.

More about Mkango Resources

Mkango Resources is a rare earths company listed on both AIM and TSX-V, focused on becoming a leader in recycled rare earth magnets, alloys, and oxides through its majority-owned Maginito platform. The group operates HyProMag in the UK and Germany for short-loop recycling and Mkango Rare Earths UK for long-loop chemical recycling. It also owns the Songwe Hill rare earth project in Malawi and the Puławy separation facility in Poland, both recognised as EU Strategic Projects.