In a recent announcement made by Mkango Resources Ltd. (TSXV / AIM: MKA), the Company pointed out that it has entered into a Memorandum Of Understanding ("MOU") with Metalysis Limited ("Metalysis") in order to collaborate in the research, development and commercialization of novel rare earth metal alloys for use in three-dimensional (3D) printed permanent magnets.
In this MOU, Mkango's intelligence on the performance characteristics and future global demand outlook for rare earth magnets will be combined with Metalysis' solid-state, disruptive process, capable of producing high margins from the manufacture of metal powders for markets including 3D printing.
Both of the parties together envisage a comprehensive research and development ("R&D") program, resulting in the joint pursuit of commercial opportunities. One such joint opportunity refers to the aspect of evaluating the United Kingdom as a country that will be responsible for hosting a manufacturing plant in the future in order to exploit a commercialized technology.
Rare earth permanent magnets are considered to be a vital component of many electric vehicles, also including other green and consumer technologies. The rare earth permanent magnet industry is dominated by China, and Mkango is well-placed to react to the global demand outlook as one of the few rare earths projects outside China has advanced beyond the pre-feasibility stage.
The existing cash resources will help in funding Mkango's share of the first phase of R&D costs.
We are very pleased to collaborate with Metalysis. It is a core part of Mkango's strategy to be at the forefront of research and technology in every step of the rare earths supply chain; positioning the Company as a future low cost, sustainable supplier of rare earths used in electric vehicles and other green technologies, which have entered a new phase of accelerating demand growth. The R&D programme will seek to enhance marketing flexibility, increase future margins and affirm the Company's competitive positioning.
William Dawes, Chief Executive Officer of Mkango