Pensana has halted plans for a rare earths refinery in East Yorkshire, opting to pursue investments in the United States instead. The company has been developing a rare earths mine in Angola for the past seven years, with a projected cost of $268 million (£185 million). This mine is expected to start delivering raw materials in 2027.
Originally, Pensana intended to build a refinery at the Saltend Chemicals Plant near Hull. This facility would have processed the raw materials into metals used for manufacturing powerful magnets, which are integral to advanced technologies including electric vehicle motors, wind turbines, and robotics. The refinery was seen as a potential step for the UK to establish a significant position in the rare earths sector, currently dominated by China.
Despite its abandonment, Pensana noted that refining operations in the UK have become economically unviable, largely due to China’s influence in keeping prices low and stifling competition. During a recent International Monetary Fund meeting, UK Chancellor Rachel Reeves addressed the growing tensions between the US and China regarding rare earths, stating efforts are underway among G7 nations to develop a critical minerals strategy that reduces reliance on China.
In 2022, a former UK government announced plans for substantial investment in the Saltend project as part of a broader Critical Minerals Strategy. However, Pensana’s chairman, Paul Atherley, indicated that the financial support of £5 million fell short of what was needed, and the Treasury did not provide additional funding. Atherley highlighted the contrast between the UK’s situation and a significant investment arrangement in the US involving MP Materials.
Earlier this year, Pensana announced a partnership with the US refiner ReElement to establish a sustainable supply chain for rare earths. The company also plans to list its shares on the Nasdaq stock exchange, while remaining optimistic about prospects in the UK, as another venture, Tees Valley Lithium, continues to advance plans for a lithium refinery in Northeast England.
Source: https://www.bbc.com/news/articles/czxnv7y03nno?at_medium=RSS&at_campaign=rss