Mkango Resources acquires Remloy to expand Germany’s rare earth recycling capabilities and strengthen sustainable magnet supply chains across Europe.
Mkango Resources has entered into an agreement with Heraeus Amloy Technologies to acquire its Remloy rare earth magnet recycling business for €8 million (US$9.4 million), marking a major step in strengthening Europe’s sustainable rare earth supply chain. The acquisition will be completed through an asset purchase agreement, with €5 million payable at closing and the remaining €3 million due two years later. The initial payment will be financed through Mkango’s existing cash reserves following its recently completed £12.5 million equity placement in April 2026. The transaction is expected to close during the summer of 2026, pending regulatory approvals and standard closing conditions.
Remloy operates a fully commissioned recycling facility in Bitterfeld, Germany, specializing in the recycling of end-of-life rare earth magnets through a melting-based “medium loop” process. The plant converts recovered materials into neodymium-iron-boron (NdFeB) alloy powders used in bonded and hot deformed magnets. This technology complements the “short loop” recycling process developed by HyProMag, Mkango’s subsidiary, which focuses on producing sintered magnets using Hydrogen Processing of Magnet Scrap (HPMS) technology.
The acquisition significantly strengthens Mkango’s position in the rapidly growing rare earth magnet recycling industry. Remloy’s facility has already undergone substantial investment in infrastructure, equipment, and feedstock, meaning no major additional development capital expenditure is expected. Production test runs are currently underway to optimize products and generate customer samples, while the company targets its first commercial sales of NdFeB alloy powders by the end of 2026.
One of the most valuable assets included in the transaction is a stockpile exceeding 300 tonnes of rare earth magnets, alloys, and raw materials. This large inventory provides operational stability and opens opportunities for future trading activities in the secondary rare earth materials market. The stockpile also creates strong synergies with HyProMag’s HPMS technology, which efficiently liberates NdFeB magnets from end-of-life products and manufacturing scrap streams.
The deal creates multiple strategic opportunities for Mkango and its subsidiaries. The addition of a second operational site in Germany enhances Mkango’s presence in Europe’s magnetic materials market and strengthens its ability to supply sustainable rare earth products across multiple magnet sectors. Potential collaborations include supplying end-of-life magnets from Remloy to HyProMag for further processing, delivering HPMS-derived feedstock from HyProMag to Remloy, and jointly pursuing technical development and grant funding opportunities alongside the University of Birmingham and the University of Pforzheim.
Mkango also sees long-term opportunities to integrate primary rare earth materials from its Songwe Hill project in Malawi with recycled feedstock processed at Remloy. This approach could support a more diversified and resilient supply chain for Europe’s magnet manufacturing sector. Additionally, the company is evaluating future expansion opportunities involving other rare earth alloy processing technologies such as strip casting.
According to Mkango Chief Executive Officer William Dawes, the transaction represents an important milestone in developing a sustainable European ecosystem for rare earth recycling and magnet manufacturing. He highlighted that, following the recent opening of HyProMag GmbH’s production facility in Pforzheim, Mkango will soon operate two rare earth facilities in Germany capable of serving the sintered, bonded, and hot deformed magnet industries.
Remloy Head David Bender also emphasized that joining Mkango provides a strong platform for scaling commercial activities, expanding customer reach, and accelerating the growth of rare earth recycling capabilities across Germany and Europe.
The Bitterfeld facility currently has a total production capacity of 500 tonnes of NdFeB alloy annually, with plans to gradually scale operations to full capacity over the next few years while requiring minimal additional capital investment.
