Plans to establish a £250 million rare earth refinery in the Humber Freeport at Saltend have been withdrawn by Pensana, halting what was expected to be a major boost for the UK’s critical minerals supply chain.
The project was designed to create 450 construction jobs and 150 operational roles, while positioning Britain as a key player in the processing of rare earth elements for electric vehicles and wind turbines. The facility was designed to process neodymium and praseodymium from Pensana’s Longonjo mine in Angola, thereby contributing to the domestic production of magnet metals.
The decision follows recent policy developments in the United States, where the government has committed to purchasing rare earths from domestic mines at fixed prices. This intervention has reshaped global market dynamics, placing UK producers at a disadvantage.
The Saltend site had been a flagship component of the government’s critical minerals strategy, with significant funding support earmarked to reduce reliance on imports from China, which currently dominates global rare earth production.
Pensana’s withdrawal marks a setback for UK ambitions to establish an independent supply chain for materials vital to clean energy technologies, advanced manufacturing, and defence applications.
