Summary: An independent pre-feasibility study has outlined a staged expansion of a proposed U.S. NdFeB recycling and manufacturing network from the planned Northlake facility to four plants. The study sets capacity and economic targets, but the additional sites still depend on feasibility work, financing, permits, feedstock and customer qualification.
The study moves the expansion concept into pre-feasibility
HyProMag USA said on October 26 that PegasusTSI and BBA USA had completed a pre-feasibility study for three additional production plants in South Carolina, Nevada and Texas. The new sites would operate alongside the Northlake, Texas facility, which is already in detailed engineering and is expected by the company to begin Phase 1 commissioning in mid-2028.
The proposed network uses a hub-and-spoke model. Each regional plant would process feedstock, apply Hydrogen Processing of Magnet Scrap and make unfinished sintered NdFeB blocks. A central Texas hub would add alloy processing, grain-boundary diffusion, machining, plating, passivation, coating, quality assurance and customer qualification.
Two feedstock cases were evaluated
The study considered one case based only on recycled magnet scrap and a second case that also accepts primary NdFeB alloy. That distinction matters to buyers because recycled feedstock can shorten the route back to magnet-grade material, while primary alloy can provide additional volume and chemistry flexibility. In either case, finished-magnet consistency still depends on feedstock control, alloy composition, thermal processing, dimensional tolerances, coating and lot traceability.
Across Northlake and the three proposed additions, the company targets approximately 4,192 metric tons per year of salable NdFeB magnets by 2034. The pre-feasibility economics for the three new plants alone estimate capital costs of roughly US$623 million to US$656 million, post-tax net present value of about US$1.85 billion to US$2.06 billion and post-tax internal rates of return of 31% to 36%. These figures are study outputs based on forecast prices and other assumptions; they are not operating results or committed financing.
What magnet buyers should verify
- Qualification by product family. Confirm which grades, geometries, coatings and temperature classes have completed customer validation rather than relying on platform-wide capacity targets.
- Feedstock and chemistry controls. Ask how recycled and primary inputs will be segregated, blended, tested and traced to finished lots.
- Finishing capability. Check whether machining, grain-boundary diffusion, coating and final inspection are available at commercial scale for the required part.
- Ramp schedule and contingency. Treat each plant as a separate milestone with its own financing, construction, commissioning and yield risks.
A capacity pathway, not current supply
The release does not announce final investment approval, completed construction or commercial output from the three expansion plants. It says the strategy is expected to advance to a feasibility study at an appropriate time. Financing, approvals, equipment performance, feedstock availability, customer offtake and future magnet prices can all change the schedule and economics.
For sourcing teams, the practical signal is that short-loop recycling is being designed as part of a broader manufacturing system that includes alloy preparation and finishing. The capacity targets should remain in a future-supply category until individual facilities pass construction, commissioning and customer-qualification gates.
Source: HyProMag USA release distributed by ACCESS Newswire.