Rare earth refinery to receive government support

Kwasi Kwarteng breaks ground at Pensana's Hull site

The £150m Saltend project by Pensana moved forward last month when planning was granted for what will be one of the largest rare earth processing plants in the world.

The development which will create 450 jobs during construction and 125 full-time jobs afterwards and is designed to play an important part in reducing the UK’s reliance on critical mineral imports from China, received another boost as it was confirmed in the government’s Critical Minerals Strategy (CMS) that it would receive funding via the government’s £850m Automotive Transformation Fund.

Business and Energy Secretary Kwasi Kwarteng who was speaking at the official opening of Pensana’s site today explained: “Britain needs to move quickly to secure the rare earth minerals necessary to supply our future industries. Most of these minerals are sourced from just a handful of countries, leaving Britain vulnerable to market shocks.”

Adding: “Our support for Pensana’s new facility in Yorkshire shows we are already putting CMS aims into action to diversify our supply chains away from dominant market players.”

Although details about how much financial support would be offered have yet to be revealed the Automotive Transformation Fund is aimed at electrifying Britain’s automotive supply chain.

Pensana chairman Paul Atherley said: “Our Saltend rare earth processing hub will be the world’s first independent and sustainable rare earth separation plant, with plans to produce 5% of the global magnet metals in 2024.

“This will play a vital role in transforming the UK’s EV and offshore wind industries, as well as creating high value local jobs in the Humber region.”

Click here to sign up to receive our new South West business news...
Close