UK Reveals Rare Earth Supply Chain Plan

The UK launches new rare earth element (REE) supply chain plan to seize China's energy separation manufacturing market. Europe faces the dilemma of highly dependent on rare-earth magnets in China, but Pensana, a REE company listed in London, announced a new supply plan to help establish an independent and sustainable green energy supply chain, and it also races with Australian Lynas.

Pensana's new plan covers the establishment of the world’s first sustainable REE separation facility at the Saltend Chemical Park in the Humber, England. The goal is to produce approximately 12,500 tons of REE oxides per year, including 4,500 tons of rare-earth magnet oxides. Is expected to account for 5% of global market demand by 2025.

The new plan also develops the expansion of Saltend's REE separation facility, which aims to challenge becoming the three major manufacturers outside of China. It is planned to build a plant worth 125 million US dollars and will create more than 100 direct jobs to process pure REE sulfate from Pensana's Longonjo mine in Angola.

Pensana CEO Paul Atherley said that Europe is facing the dilemma that 98% of REE magnets rely on China. It is a critical moment to change the situation. Saltend will likely become the first major player in more than 10 years. The separation facility would initially seek to purchase high-purity raw materials from the Longonjo mine, and is expected to establish a high-value processing supply chain in the UK.

Atherley added that Europe is facing the dilemma that 98% of REE magnets rely on China. It is a critical moment to change the situation. Saltend will likely become the first major player of separation facilities. in more than 10 years. The separation facility will initially seek to purchase high-purity raw materials from the Longonjo mine, and hopes to use the recently obtained port qualifications to establish a high-value processing supply chain in the UK.

Regarding when the new green development project will start, Arthurley responded: "The Saltend separation facility and the Longonjo mine have been approved by the British government, and we look forward to launching development activities later this year."

Lynas admitted recently that the Chinese market's demand for rare-earth core materials is increasing day by day, and the output of Chinese manufacturers has soared in recent years. As China's renewable energy, automobile manufacturing, electronics and defense sectors continue to increase demand for REEs, Chinese manufacturers are also accelerating the increase in production.

Lynas CEO Amanda Lacaze said: "Over the years, Chinese manufacturers have established all stages of the value of the supply chain and will continue to flourish. China's increase in production marks that the market will continue to increase the price of rare earth commodities after reaching a record high in March this year. And it will continue to move in the direction of growth. Lynas' sales revenue in the first quarter of this year was US$110 million, down from US$119.4 million in the previous three months.