Agreement strengthens supply chain for critical energy sector raw materials
Rare earth exploration and development company, Pensana, has signed a memorandum of understanding for offtake of 25% of annual production to supply critical raw materials for production of magnet materials.
These products are needed to support the rising demand for electric vehicles and offshore wind.
Pensana says it is entering into this strategic relationship by supplying rare earth oxides from the Saltend processing hub in the freeport of Hull.
The business recently broke ground at the Saltend Chemical Park in the Humber Freeport UK, with high-value raw materials supplied from a hydroelectric-powered mine at Longonjo, in Angola.
Chairman Paul Atherley said: “This agreement represents a significant step forward in our goal of providing an independent and sustainable supply of rare earth magnets for the Electric Vehicle and offshore wind industries.
“By having a significant partner across the globe, we now have further validation from the industry that Pensana’s project is an essential element in the growing value chain for these critical minerals.
“We look forward to working with our partners and hope to expand our relationship as our project progresses with the introduction of Metal conversion and Heavy Rare earth separation at our Saltend facility powered by offshore wind, offering ultra-low embedded carbon products essential for the energy transition.”