Inward-investing rare earths specialist Pensana has announced an initial agreement for the sale of 25 per cent of its proposed production at Saltend.
The company has revealed a memorandum of understanding has been signed for a quarter of the anticipated critical raw materials for magnet metals, set to be refined on the Humber Bank. Who the agreement is with was not divulged in the statement, released to the City. The entity has been described as a "non-Chinese major industry player".
Pensana is investing more than £150 million in a complex chemical separation plant on the freeport site east of Hull. The minerals, to be sourced from its Angolan mine operations and third parties, are required in the burgeoning production of electric vehicles and wind turbines, with 125 direct jobs to be created.
Read more: Pensana teams up with Polestar for world's first truly climate neutral car
New Chancellor Kwasi Kwarteng performed the groundbreaking ceremony with chairman Paul Atherley in one his final acts as Business Secretary in July.
In a pre-trading statement issued on Monday, Mr Atherley told the markets how the business was “extremely pleased to be entering into this strategic relationship” supplying rare earth oxides, adding how “we will continue to develop the independent and sustainable supply chain for low carbon rare earth products to be produced in Europe”.
He 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. It is also an important step in finalising the financing for the project.
"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 closely 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."
In May, Mr Atherley had told how discussions were underway for half of the production to be taken by an Asian magnet manufacturer, with a potential further 30 per cent to be marketed by a major trading house.
Monday's trading saw Pensana shares close up almost five per cent to 57p, and 33 per cent over the past week.
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