Mkango Resources Limited (LON:MKA)(CVE:MKA) has entered into a Memorandum Of Understanding with Metalysis Limited jointly to research, develop and commercialise novel rare earth metal alloys for use in three-dimensional printed permanent magnets.
Metalysis owns a proprietary metal processing technology that can manufacture metal powders at high margins, and which originated in the University of Cambridge.
The MOU will combine Mkango's expertise in the rare earths and rare earths magnets markets Metalysis' technology.
The two companies envisage a comprehensive research and development programme, culminating in the joint pursuit of commercial opportunities. One such opportunity includes evaluating the United Kingdom as a future host country for a manufacturing plant to exploit a commercialised technology.
Rare earth permanent magnets are a critical component of many electric vehicles, as well as other consumer and green technologies. China dominates the rare earth permanent magnet industry, and with one of the few rare earths projects outside China to have advanced beyond the pre-feasibility stage, Mkango is well-placed to respond to the global demand outlook.
Mkango's share of the first phase of R&D costs will be funded out of existing cash resources.