London-listed Pensana’s plans to develop a £150-million rare earths refinery at the Saltend Chemicals Park, in the UK, have been approved by the East Riding of Yorkshire Council (ERYC).
Pensana seeks to create a magnet metals supply chain in the UK, especially considering that 90% of the world’s magnets are produced in China.
Electric cars need about 1 kg of magnet, while a 260 m wind turbine can use up to 7 t.
The ERYC is a unitary authority, providing local government services in, among others, Hull, where the Saltend Chemicals Park is based.
ERYC counsellor John Whittle comments that if the refinery will enhance the robustness of the UK, then it must be supported.
Business secretary Kwasi Kwarteng says about £4-million of taxpayers’ money, from the £1-billion Automotive Transformation Fund (ATF), will be granted to the project.
The ATF was established to help develop secure supply chains in critical minerals and battery components in the country.
The refinery is expected to create 125 jobs.
Pensana earlier in May confirmed through a front-end engineering design and value engineering study the capital cost for its Saltend and Longongo rare earth mine operation, in Angola, combined, will cost $494-million to develop.
Pensana chairperson Paul Atherley says the recognition of the ERYC speaks to the strategic importance of the refinery and that planning for a larger site within the chemicals park can go ahead.
A larger site will allow for the expansion into further downstream production.