Major UK rare earths refinery scrapped in favour of US
Summary
Plans to build a rare earths refinery in the UK have been canceled in favor of developing a similar project in the United States. Pensana, the company behind the project, chose to focus on the U.S. due to better financial support and investment opportunities. The decision highlights challenges related to market competition and government support in the rare earths industry.Key Facts
- Pensana planned to build a rare earths refinery in Saltend, UK, but has now canceled these plans.
- The company will focus its efforts on the U.S., where it aims to develop a rare earth supply chain with better financial backing.
- Pensana has been developing a mining project in Angola that will start delivering raw materials in 2027.
- Rare earths are minerals used to create powerful magnets for technology like electric vehicles and wind turbines.
- China currently dominates the rare earths market and has kept prices low, making it difficult for new competitors.
- The UK government provided £5 million for the Saltend project, which Pensana says was insufficient.
- The U.S. government supports similar projects with much larger investments and favorable financial terms.
- Pensana plans to list its shares on the Nasdaq stock exchange and work with U.S. company ReElement.
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