Pensana and The Yorkshire Energy Park have signed a letter of intent for the site of a future permanent magnet metal facility within the park, alongside the Saltend Chemicals Park in the Humber Freeport.
By 2030 the UK is expected to have transitioned from being a major European producer of internal combustion engines to being a world leader in the manufacture of electric drive units, but without a secure magnet metal supply chain, this transition is under threat.
As part of its plans to establish an independent supply chain for magnet metals, Pensana is currently undertaking studies into the conversion of rare earth oxides into magnet metals using electric furnaces powered by offshore wind.
The letter of intent with YEP covers the proposed site as well as the supply of zero carbon electricity and a range of bespoke facilities for the processing of rare earths in magnet metals, R&D and supply chain activities.
The event was also attended by the Vice Chancellor of Lincoln University, which is working with Pensana and YEP to create a regional specialised centre of engineering excellence, training and higher education on YEP for the Humber region.
Paul Atherley, Pensana Chairman, said: ”The partnership between YEP and Pensana is part of a broader study being undertaken to demonstrate how the UK can draw on its chemical engineering heritage and by connecting to offshore wind to create resilient supply chains to support the UK’s automotive sector in its transition from a major producer of internal combustion engines to be a world leader in the manufacture of electric drive units.”
Chris Turner, YEP Chairman, added: “We welcome the opportunity to deepen our collaboration with Pensana and the University of Lincoln on this nationally significant project. It represents another milestone for YEP and the Humber Freeport in delivering a zero carbon/advanced technology industrial cluster on the Humber.”
