CoTec Notes HyProMag USA Deployment of Third Mobile Inserma HDD Processing System
CoTec Holdings says its HyProMag USA joint venture has deployed a third Inserma system as a mobile unit and completed commercial sales of recovered PCB material.
CoTec Holdings Corp. (TSXV:CTH)(OTCQX:CTHCF) said on October 19, 2026, that its joint venture HyProMag USA, LLC has deployed a third Inserma hard disk drive separation system as a mobile processing unit. The equipment is intended to support customer trials, on-site recovery work and the development of additional feedstock sources across the United States.
The mobile unit complements fixed Inserma installations operated through Intelligent Lifecycle Solutions in South Carolina and Nevada. HyProMag USA plans to use the system in customer qualification programmes, feedstock development work and processing campaigns carried out at customer facilities.
The company said the mobile configuration is also intended to support recovery programmes in hyperscale data centres and secure IT asset disposition environments. ILS provides recovery, processing and recycling services for end-of-life electronic equipment, with operations supported by R2v3 certification, ISO-certified management systems and documented chain-of-custody procedures.
HyProMag USA said material currently under contract and in storage, combined with active procurement programmes, is expected to support initial commissioning and Phase 1 ramp-up at the planned Dallas-Fort Worth facility, known as the Texas Hub, in 2028.
Sourcing work extends across industrial, healthcare, government and IT asset disposition sectors. The joint venture is also assessing industrial and transportation-related material streams, with pilot programmes and commercial opportunities under review.
ILS has completed commercial sales of recovered printed circuit board material for HyProMag USA to downstream smelter partners. The sales have generated revenue within the hard disk drive processing flow sheet.
HyProMag USA said magnet-bearing material is being retained as inventory for future rare earth recycling operations. Revenue from the recovered PCB material partly offsets the cost of acquiring and retaining that inventory.
#Testing continues on next-generation Inserma equipment
A next-generation Inserma system designed for the high-capacity hard disk drives used in hyperscale data centres is undergoing testing. The equipment is intended to process formats that include helium-filled drives.
According to HyProMag USA, early testing has indicated processing times of under three seconds per drive and successful handling of modern high-capacity data-centre formats.
HyProMag USA LLC is owned 50:50 by CoTec and HyProMag Limited. HyProMag Limited is wholly owned by Maginito Limited, which is owned 79.4% by Mkango Magnetic Materials Limited and 20.6% by CoTec.
HyProMag USA is developing rare earth magnet recycling and manufacturing operations using Hydrogen Processing of Magnet Scrap technology. Its stated feedstock scope includes end-of-life hard disk drives, electric vehicle motors, industrial equipment, consumer electronics and manufacturing scrap.
Statements about the Texas Hub, mobile Inserma deployment, feedstock inventories and procurement, PCB sales, equipment testing, commissioning in 2028, additional feedstock channels and partnership development are forward-looking information from CoTec. The company said actual results could differ materially from those anticipated.
CoTec identified risks including financing availability, access to suitable feedstock, equipment performance and reliability, environmental costs, permitting and regulatory matters, labour costs and shortages, material supply and price fluctuations, higher energy costs, labour disputes and work stoppages, leasing costs, equipment availability, contractor and subcontractor performance, worksite safety, project delays and cost overruns, extreme weather, and social, transport and geopolitical disruptions.
HyProMag USA has deployed its third Inserma hard disk drive separation system as a mobile unit in the United States.
The mobile system is intended to support customer trials, on-site recovery campaigns and feedstock development.
Contracted and stored feedstock, alongside procurement programmes, is expected to support Phase 1 commissioning and ramp-up at the Texas Hub in 2028.
Commercial sales of recovered PCB material to downstream smelter partners have generated revenue that partly offsets feedstock acquisition and retention costs.
A next-generation system for high-capacity and helium-filled hard disk drives is being tested, with early results indicating processing times of under three seconds per drive.
CoTec Holdings Corp. noted that its joint venture, HyProMag USA, LLC, had deployed its third Inserma hard disk drive separation system as a mobile processing unit. The deployment is intended to expand customer engagement, on-site recovery campaigns and feedstock development opportunities across the United States.
The mobile Inserma system is designed to process end-of-life hard disk drives at customer sites. HyProMag USA says it will support customer trials, feedstock development programmes and on-site processing campaigns, including within hyperscale data centres and secure IT asset disposition environments.
HyProMag USA has deployed its third Inserma system as a mobile unit to complement fixed installations operating through the Intelligent Lifecycle Solutions partnership in South Carolina and Nevada. The mobile configuration is intended to extend processing and customer engagement across the United States.
CoTec Holdings Corp. says feedstock inventories under contract and in storage, together with active procurement programmes, are expected to support initial commissioning and ramp-up of Phase 1 at the planned Dallas-Fort Worth facility, referred to as the Texas Hub, in 2028.
HyProMag USA is building feedstock inventories through materials under contract and in storage, active procurement programmes and sourcing activities across industrial, healthcare, government and IT asset disposition sectors. The company is also evaluating industrial and transportation-related material streams, with pilot programmes and commercial opportunities under review.
Yes. Intelligent Lifecycle Solutions has completed commercial sales for HyProMag USA of recovered printed circuit board material to downstream smelter partners, generating revenue within the HDD processing flow sheet. CoTec says that revenue partly offsets the cost of acquiring and retaining magnet-bearing feedstock inventory for future rare earth recycling operations.
Magnet-bearing materials recovered through the process are being retained as feedstock inventory for future rare earth recycling operations. The inventory is intended to support future requirements for the Texas Hub, while recovered PCB material is sold to downstream smelter partners.
A next-generation Inserma system designed for high-capacity hard disk drives used in hyperscale data centres, including helium-filled units, is currently being tested. HyProMag USA says early results indicate processing times of under three seconds per drive and successful processing of modern high-capacity data-centre formats.
Intelligent Lifecycle Solutions operates with R2v3 certification, ISO-certified management systems and documented chain-of-custody procedures. CoTec says these controls are designed to support traceability from collection through processing and final disposition of data-bearing equipment.
CoTec Holdings Corp. focuses on rare earth magnets and strategic materials, including through its HyProMag USA magnet recycling joint venture in Texas. HyProMag USA is developing rare earth magnet recycling and manufacturing operations using Hydrogen Processing of Magnet Scrap technology to recover magnet-grade material from feedstocks including end-of-life HDDs, EV motors, industrial equipment, consumer electronics and manufacturing scrap.
HyProMag USA LLC is owned 50:50 by CoTec and HyProMag Limited. HyProMag Limited is 100% owned by Maginito Limited, which is owned 79.4% by Mkango Magnetic Materials Limited and 20.6% by CoTec.
CoTec Holdings Corp. is identified in the announcement as trading on the TSX Venture Exchange under TSXV:CTH and on the OTCQX under OTCQX:CTHCF.
CoTec Holdings Corp. says forward-looking plans face risks including financing and suitable feedstock availability, equipment performance and reliability, environmental, permitting and regulatory costs, labour costs and shortages, material supply and price fluctuations, energy costs, project delays and cost overruns, and social, transport and geopolitical disruptions. The company states that actual results could differ materially from those anticipated and that readers should not place undue reliance on its forward-looking information.