BIRMINGHAM, U.K., Jan. 15, 2026 — The University of Birmingham today launched a new West Midlands-based facility for separating and recycling rare earth magnets that will help to reduce the UK’s reliance on imports of rare earth metals, alloys, and magnets.
Rare earth magnets are amongst the key ‘critical minerals’ that are integral to modern life. They form a core building block in technologies such as wind turbines, electric vehicles, medical equipment, pumps, robotics, and electronics. Demand for these minerals will only increase as the adoption of low-carbon technologies accelerates and they are fundamental to the UK’s modern industrial strategy.
Opened by Chris McDonald MP, Minister for Industry in the Department for Energy Security and Net Zero and the Department for Business and Trade, Birmingham’s rare earth magnet recycling facility uses a groundbreaking hydrogen-based process developed by researchers at the University of Birmingham.
Innovative Rare Earth Recycling Process
Hydrogen Processing of Magnet Scrap (HPMS) technology is an extremely efficient method to extract rare earth magnets from end-of-life products without the need to fully disassemble them. It transforms waste into a sustainable UK source of rare earths that can be used to manufacture new metals, alloys and magnets whilst reducing both environmental impact, cost and supply chain risk.
The facility at Tyseley Energy Park in Birmingham scales the process to commercial production levels. The previous proof of concept facility handled batches of 50-100kg size while the new scaled up facility can recover over 400kg of rare earth alloy per batch and into new sintered magnets at 100 tonne capacity per year on a single shift and over 300 tonnes on multiple shifts. Magnets can be produced at a fraction of the environmental impact and cost compared to primary production methods.
The processing facility re-introduces sintered rare earth magnet production back into the UK for the first time in 25 years and this can be used for primary production of magnets as well as from recycled feeds.
By recycling products such as hard drives, electric motors, wind turbines, robotic actuators, pumps, filters, and electronics, this also delivers a CO2 saving of around 90% compared to producing magnets from minerals extracted from the ground.
In November 2025, the UK Government published its updated ‘Vision 2035: Critical Minerals Strategy’ setting out how the UK will increase resilience in this strategic sector. The Birmingham recycling facility aims to address the strategy’s goals and is a stepping stone to a larger scale facility being developed on the site.
Minister for Industry Chris McDonald MP said: "This new facility is great news for the West Midlands which will help create hundreds of well-paid local jobs and is testament to our world-leading expertise in rare earth recycling.
“This is our Critical Minerals Strategy in action, bringing sintered magnet manufacturing back to the UK for the first time in 25 years and backing innovative projects to boost our critical minerals supply chains and power the green industries of the future.”
Circular Solutions for Critical Minerals
Rare earth recycling sits within the University of Birmingham’s broader research strengths in battery recycling, robotic disassembly, chemical recovery, and energy storage.
Professor Rachel O’Reilly MBE FRS, Pro-Vice Chancellor (Research) at the University of Birmingham, said: “By developing complete circular solutions for the supply of critical minerals such as those found in rare earth magnets, the University of Birmingham is playing an essential role in helping the UK become a technological leader in this field.
“Supported directly by the University itself and through the allocation of QR funding from Research England and programme funding from UKRI, this is a brilliant development of the UK’s competitive advantage. Opening the Birmingham magnet recycling facility highlights the vital role of university-led research and development in delivering industrial capabilities and addressing national resilience and sustainability goals identified among the UK Government’s strategic and societal priorities.”
The recycling facility has been funded (£4.5 million) by Innovate UK’s Driving the Electric Industrialisation Centres (DER-IC) with supporting grants via the Innovate Climates Programme, EPSRC, the Advanced Propulsion Centre, and EU Horizon grants. This investment supported the UK’s push towards a net zero carbon economy and contributes to the development of clean technology supply chains.
Bruce Adderley from Innovate UK, said: “Through the realisation of this magnet recycling facility, the UK now has all the constituent parts of a rare earth permanent magnet supply chain for the first time in over two decades. As an open access facility this provides UK industry the opportunity to access the skills and expertise, from the University of Birmingham team to scale and commercialise this innovate recycling process.
“This is a fantastic example of research to industry knowledge transfer and has the potential to de-risk the supply of rare earth permanent magnets to the UKs manufacturing industry and make these crucial components more sustainable.”
Strategic UK Focus for Critical Materials
In 2021, the Birmingham Centre for Strategic Elements and Critical Materials (BCSECM) at the University of Birmingham produced a Policy Commission report titled Securing Technology-Critical Metals for Britain in conjunction with multiple partners.
Researchers warned that the UK faced major industrial shifts as it transitions from fossil fuels to electrification - increasing dependence on technology critical metals (TCMs) such as lithium, cobalt, and rare earths. They recommended that developing strategies for recycling, primary production, processing, and international partnerships would be crucial to securing materials needed for the UK’s low carbon, competitive industrial future, and this document helped frame the first UK Critical Minerals Strategy in 2022.
Lead investigator and Head of the Magnetic Materials Group (MMG) Professor Allan Walton, from the Birmingham Centre for Strategic Elements and Critical Materials, said, “The late Emeritus Professor Rex Harris started recycling activities in the group over 20 years ago. Since then, the group has scaled up multiple recycling processes to sense, sort, extract, and purify rare earth magnets.
“This has only been possible because of the commitment of the highly skilled team within the Magnetic Materials Group and working with partners across the rare earth value chain on large interdisciplinary projects.”
“The University of Birmingham recycling facility will provide recycled feedstock to multiple parts of the UK rare earth value chain, it will drive job creation, workforce skills development, and long-term economic growth in the UK. Our region has a proud manufacturing heritage, and the Midlands is key to the midstream of the UK’s critical materials supply chain.”
Recycling technologies developed by the Magnetic Materials Group at the University of Birmingham have been exclusively licensed to Hypromag Ltd, which is now 100% owned by Maginito Ltd, a subsidiary of AIM/TSXV listed Mkango Resources.
William Dawes, Chief Executive of Mkango and Director of HyProMag said, “This is a landmark achievement and transformational for rare earth supply chains, bringing back magnet manufacturing to the UK after more than 20 years and underpinned by a home-grown technology, HPMS, that not only delivers a cost advantage, but one with a minimal carbon footprint.”
“Since Mkango’s first investment in HyProMag in 2020 and HyProMag’s ongoing collaboration with the University of Birmingham as the commercial partner and exclusive licencee, it is fantastic to see HPMS technology progress to commercialisation with the support of Innovate UK and other stakeholders, a credit to the vision and determination of everyone involved. This development provides a strong platform for further scale-up in the UK and international roll-out, already underway in Germany, USA, and other countries.”
David Watkin, Battery Services Lead, JLR, said: “Rare-earth elements are crucial for electric and connected vehicles and at JLR we’re focussed heavily on advancing circularity through reduced content, designing for disassembly and, as the infrastructure matures, shifting from virgin to recycled material. Opening a UK recycling facility for rare earth magnets marks a significant step forward in supporting a more resilient, responsible, and lower carbon supply chain.”
About the University of Birmingham
As well as being ranked among the world’s top 100 institutions, the University of Birmingham is the most targeted UK university by top graduate employers. Its work brings people from across the world to Birmingham, including researchers, educators and more than 8,000 international students from over 150 countries.
About the Magnetic Materials Group
The Magnetic Materials Group is part of the Birmingham Centre for Strategic Elements and Critical Materials (BCSECM) at the University of Birmingham. Leading many of the largest projects in the UK on the circular economy of critical materials, it is a hub for ‘midstream processing’ such as the RECREATE EPSRC funded project and the Faraday ReLiB project on battery recycling.
The UK Vision for Critical Minerals
In November 2025, the UK Government published its updated ‘Vision 2035: Critical Minerals Strategy’ setting out how the UK will grow domestic production and use its international partnerships to support the country’s resilience in this strategic sector. The new strategy sets out that by 2035 at least 10% of annual UK demand for critical minerals should be met through domestic production and that 20% of total annual UK demand for critical minerals is met through recycling of products to recover critical minerals by 2035. Also, by 2035 supply of CRMs should be diversified, so that no more so that no more than 60% of the UK’s annual demand for critical minerals in the aggregate is supplied by any one country.
About Innovate UK
Innovate UK, part of UK Research and Innovation, is the UK’s innovation agency. It works to create a better future by inspiring, involving and investing in businesses developing life-changing innovations. Its mission is to help companies to grow through their development and commercialisation of new products, processes and services, supported by an outstanding innovation ecosystem that is agile, inclusive and easy to navigate.
About HyProMag
HyProMag’s aim is to develop a full recycling supply chain for rare earth magnets based upon neodymium iron boron (NdFeB). HyProMag has licensed the patented technology called HPMS (Hydrogen Processing of Magnet Scrap) developed in the Magnetic Materials Group (MMG) at the University of Birmingham and is the main industrial partner of the facility at Tyseley Energy Park. HyProMag is 100% owned by Maginito Limited (“Maginito”), which is 79.4% owned by Mkango and 20.6% owned by CoTec Holdings (“CoTec”).
About the Process
The recycling facility can extract and purify alloy powders and directly recycling these materials into new sintered magnets. HPMS delivers major competitive advantages over other rare earth magnet recycling technologies, which are largely focused on chemical processes but do not solve the challenges of extracting magnets from end-of-life scrap streams.
For more information, contact the University of Birmingham press office at +44 (0) 121 414 2772 or pressoffice@contacts.bham.ac.uk.
The University of Birmingham recycling facility will provide recycled feedstock to multiple parts of the UK rare earth value chain, it will drive job creation, workforce skills development, and long-term economic growth in the UK. Our region has a proud manufacturing heritage, and the Midlands is key to the midstream of the UK’s critical materials supply chain.
Photo Credit – Greg Milner
