A multi-million-pound investment in the UK’s first-ever magnet materials refiner has launched alongside the Critical Minerals Strategy. The government says this will secure hundreds of jobs in East Yorkshire, and a strong foothold for Britain in the international market.
The announcement comes as the government publishes the UK’s first ever ‘Critical Minerals Strategy’, which it says is to bolster the resilience of supply chains and seize on the economic opportunities of growing industries, such as electric vehicle manufacturing and offshore wind.
Our support for Pensana’s new facility in Yorkshire shows we are already putting the Strategy’s aims into action.
Speaking at the official opening of Pensana’s £145 million Saltend site, Business Secretary Kwasi Kwarteng confirmed that the facility will be developed to process the critical minerals used in magnets, a key component for manufacturing electric vehicles (EVs).
The facility is backed by the government’s Automotive Transformation Fund, an £850 million programme and Pensana expects operations to begin at the end of 2023.
The Government says the refinery will make the UK one of the only places in Europe to have the facility to refine the rare earth oxides used in the creation of magnets, and will also lead to the creation of 126 new and skilled jobs in the area.
Business and Energy Secretary Kwasi Kwarteng, said: “With rising geopolitical threats, Britain needs to move quickly to secure the rare earth minerals necessary to supply our future industries.
“Most of these minerals are sourced from just a handful of countries, leaving Britain vulnerable to market shocks. We need to develop and strengthen our own supply chains to protect our national security into the future.
“Russia’s illegal invasion of Ukraine is a timely reminder of how global events beyond our control can impact supply chains, with profound consequences for the economy. To boost our domestic resilience, today’s Critical Minerals Strategy lays out our plan to bring high value manufacturing back to the UK to protect our country’s future access to supplies.
“Our support for Pensana’s new facility in Yorkshire shows we are already putting the Strategy’s aims into action to diversify our supply chains away from dominant market players.”
