The grant has been awarded to HyProMag Ltd, a subsidiary of Maginito Ltd, a unit of Mkango in which it holds a 25% stake.
The project is "Rare-Earth Extraction from Audio Products" and will investigate ways of recycling rare earth magnets from speakers used in automotive and consumer electronics applications.
"Rare earth magnet recycling from end-of-life components represents a significant market opportunity and will become an increasingly important part of the rare earth supply chain in the UK, Europe and elsewhere,” said Mkango chief executive William Dawes in a statement.
“The REAP project complements the Rare Earth Recycling for E-Machines project announced earlier in the year, and further cements HyProMag's and University of Birmingham's positions as leaders in the field. Mkango is uniquely positioned in the rare earths supply chain, developing sustainable solutions for the supply of rare earth carbonate, NdPr oxide, NdFeB alloys and magnets, underpinned by the strategic partnership with HyProMag and sustainable development of the Songwe Hill rare earths project in Malawi, for which a feasibility study is underway," he added.