Hull Chemicals Park proposed as site for UK's first rare earth processing plant

A chemicals park selected as the proposed site to build the UK's first rare earth processing plant could help to create a sustainable supply chain of powerful magnets essential for wind turbines and electric vehicles.

The Pensana Rare Earths facility at Saltend Chemicals Park, in Hull, would be one of only two major producers outside China of rare earth oxides - a material used in the manufacture of powerful permanent magnets and critical to the offshore wind and electric vehicle industries.

It would be built with the view to helping create the world's first fully sustainable magnet metal supply chain and could bring more than £100 million in investment and create around 100 direct jobs, a Pensana spokesman said.

Pensana said it is looking to start development of a sustainable rare earth mine in Angola at the beginning of 2021.

Mixed rare earth sulphates would be imported from Angola and processed into separated magnet metal oxides at Saltend Chemicals Park - a 370-acre site on the Humber estuary, containing chemicals and renewable energy businesses.

The company said it is in discussion with the Department for International Trade regarding the establishment of a sustainable permanent magnet supply chain in the UK and is working with various initiatives supporting electric vehicle and offshore wind industries.

It said a planned #6 billion offshore wind farm off the coast of Hull, in the Dogger Bank area of the North Sea, that will be able to supply around 5% of the UK's electricity, would be powered by an array of turbines, each requiring more than seven tonnes of permanent magnets.

A spokesman said:

"The UK and the EU are world leaders in the offshore wind and electric vehicle industries, both of which are dependent on permanent magnets.

"Both have recognised that the green recovery requires critical raw materials and that a sustainable magnet metal supply chain is needed to support the green economy.''

Paul Atherley, chairman of Pensana, said:

"The Saltend Chemicals Park offers an exceptional range of services, allowing us to plug into power, water, reagent supplies and services and to recruit a highly skilled local workforce at internationally competitive rates.

"It is very clear that it is no longer acceptable for British and European companies to import the raw materials critical to the green economy from unsustainable sources.

"The Saltend facility has the potential to become a world-class producer of rare earth oxides and to help establish a sustainable supply chain for the manufacture of powerful permanent magnets critical for the offshore wind and electric vehicle industries in the UK and Europe.''

Gerry Grimstone, minister for investment, said:

"We very much welcome the proposal to establish a fully sustainable rare earth oxide magnet metal processing facility in the Humber region.

"This facility is an important step in the establishment of a permanent magnet supply chain in the UK, which could support a range of industries important to building back greener, and our net zero, ambitions.''