HyProMag USA Secures Texas Hub Power Capacity as Permitting and Contractor Selection Advance
CoTec Holdings says HyProMag USA has secured electricity capacity with Oncor for its Texas rare earth magnet recycling and manufacturing project in Texas, while permitting and contractor selection continue.
CoTec Holdings Corp. (TSXV:CTH)(OTCQX:CTHCF) said its 50:50 joint venture, HyProMag USA LLC, has secured electrical power capacity with Oncor Electric Delivery Company LLC for its planned Texas Hub in Dallas-Fort Worth. The project remains under development, with permitting and contractor selection now progressing ahead of targeted commissioning and construction milestones.
HyProMag USA has secured power capacity for the planned cutting and finishing operations and Phase 1 of the Texas Hub. The company also described a pathway to support Phase 2 through a sub-station upgrade. Electricity for the facility is expected to come predominantly from renewable energy resources.
The development update follows the start of formal power supply discussions announced on June 22, 2026. CoTec said the power arrangements relate to the Texas Hub’s planned rare earth magnet recycling and manufacturing activities.
Weston Solutions, Inc. is advancing permitting work for the Texas Hub. Separately, Pegasus TSI, Inc. has begun a Request for Quotation process to identify a general contractor for the initial cutting and finishing operations.
Pegasus and BBA USA Inc. are HyProMag USA’s U.S.-based engineering, procurement and construction management firms.
HyProMag USA is targeting commissioning of the cutting and finishing facility in H1 2027. CoTec said the operation is expected initially to use neodymium iron boron, or NdFeB, magnet blocks supplied from HyProMag Group operations to make finished magnets.
The facility is designed to process NdFeB magnet blocks and support finished-magnet qualification under ASTM A977/A977M. Its quality systems are intended to align with ISO 9001 as well as customer-specific quality, performance and traceability requirements. HyProMag USA also describes the site as a training facility for NdFeB magnet finishing ahead of the wider Texas Hub development.
CoTec said Phase 1 is targeted for completion in mid-2028. The company says this stage is designed to produce approximately 550 tpa of sintered NdFeB magnet blocks and finished magnets, alongside approximately 484 tpa of co-products, representing approximately 1,034 tpa of total payable production.
HyProMag USA’s Phase 2 plan envisions expansion to approximately 1,526 tpa of total payable production. Upon completion of Phase 2, the Texas Hub is expected to produce approximately 1,048 tpa of sintered NdFeB magnet blocks and cylinders, together with approximately 478 tpa of co-products, representing total payable production of approximately 1,526 tpa.
These timing and production statements are forward-looking. CoTec identified risks that could affect the plans, including financing availability, environmental and permitting risks, labour costs and shortages, material supply and price fluctuations, energy costs, equipment availability, contractor and subcontractor performance, project delays, cost overruns, extreme weather, and social, transport and geopolitical disruptions.
HyProMag USA is developing the Texas Hub around Hydrogen Processing of Magnet Scrap, or HPMS, technology. The company says the process supports magnet-to-magnet short-loop recycling and can accept feedstocks such as end-of-life electric vehicle motors, data-centre and industrial equipment, consumer electronics and manufacturing scrap without chemical processing.
HyProMag USA is owned equally by CoTec and HyProMag Limited. HyProMag Limited is wholly owned by Maginito Limited, whose ownership is listed as 79.4% by Mkango Magnetic Materials Limited and 20.6% by CoTec.
CoTec Chief Executive Officer Julian Treger said securing power, progressing permitting and starting contractor selection were milestones for the Texas Hub. He said the initial 2027 operations are expected to establish U.S. magnet finishing and qualification capabilities, while Phase 1 is expected to provide integrated recycling and magnet manufacturing capacity.
HyProMag USA has secured power capacity with Oncor for the Texas Hub’s cutting and finishing operations and Phase 1.
Weston Solutions is advancing permits, while Pegasus TSI has started the process of selecting a general contractor.
Cutting and finishing commissioning is targeted for H1 2027, subject to the risks and uncertainties identified by CoTec.
Phase 1 completion is targeted for mid-2028, with approximately 1,034 tpa of total payable production designed.
Upon completion of Phase 2, the Texas Hub is expected to produce approximately 1,048 tpa of sintered NdFeB magnet blocks and cylinders and approximately 478 tpa of co-products, representing total payable production of approximately 1,526 tpa.
On October 13, 2026, CoTec Holdings Corp. said its joint venture, HyProMag USA, had secured electrical power capacity with Oncor Electric Delivery Company LLC for its Texas Hub rare earth magnet recycling and manufacturing project in Dallas-Fort Worth, Texas. Contractor selection and permitting are also underway.
The update was announced on October 13, 2026 and covers development activities for the Texas Hub, including power supply, permitting, contractor selection and planned project milestones.
CoTec Holdings Corp. trades on the TSXV under the ticker symbol CTH and on the OTCQX under the ticker symbol CTHCF.
HyProMag USA has secured power capacity with Oncor for the Texas Hub's cutting and finishing operations and Phase 1 development. The company says there is also a pathway through a sub-station upgrade to provide power for Phase 2, while electricity is expected to be supplied predominantly from renewable energy resources.
Weston Solutions, Inc. is advancing permitting activities, while Pegasus TSI, Inc. has commenced a Request for Quotation process to select a general contractor for the cutting and finishing operations. Pegasus and BBA USA Inc. are HyProMag USA's U.S.-based engineering, procurement and construction management firms.
HyProMag USA is targeting commissioning of the cutting and finishing operations in H1 2027. The facility is expected to initially process neodymium iron boron magnet blocks supplied from HyProMag Group operations to produce and qualify finished magnets.
The facility is designed to process NdFeB magnet blocks and support qualification of finished magnets in accordance with ASTM A977/A977M, with quality management systems aligned with ISO 9001 and customer-specific quality, performance and traceability requirements. HyProMag USA says it is intended to provide U.S. customer qualification capabilities and serve as a strategic training facility ahead of the main Texas Hub developments.
HyProMag USA says Phase 1 is targeted for completion in mid-2028 and is designed to produce approximately 550 tpa of sintered NdFeB magnet blocks and finished magnets and approximately 484 tpa of co-products, representing approximately 1,034 tpa of total payable production.
HyProMag USA says Phase 2 envisions expansion to approximately 1,526 tpa of total payable production. Upon completion of Phase 2, the Texas Hub is expected to produce approximately 1,048 tpa of sintered NdFeB magnet blocks and cylinders and approximately 478 tpa of co-products.
HyProMag USA uses Hydrogen Processing of Magnet Scrap, or HPMS, technology for rare earth magnet recycling and manufacturing. The company says the technology enables magnet-to-magnet short-loop recycling, uses 88% less energy and reduces carbon emissions by 85% compared with conventional methods, while accepting magnet-bearing feedstocks including end-of-life EV motors, data-centre and industrial equipment, consumer electronics and manufacturing scrap.
HyProMag USA LLC is owned 50:50 by CoTec Holdings Corp. 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 Chief Executive Officer Julian Treger said securing power, advancing permitting and commencing contractor selection were milestones for the Texas Hub. He said initial cutting and finishing operations in 2027 are expected to establish U.S. magnet finishing and qualification capabilities, while the full Phase 1 development is expected to provide integrated recycling and magnet manufacturing capacity.
CoTec says its forward-looking statements about the Texas Hub, including power supply, permitting, contractor selection, timing and targeted production capacity, involve risks and uncertainties. The company identifies risks including financing availability, environmental and permitting costs, labour costs and shortages, material supply and price fluctuations, energy costs, equipment availability, contractor performance, project delays, cost overruns, extreme weather and social, transport and geopolitical disruptions.