· US offers more funding than EU or UK for minerals
· Pensana shifts rare earth refinery plans to US
· Longonjo mine targets 2027 production start
The US is providing substantially greater financial support for critical minerals projects than either the EU or the UK, making it a far more attractive destination for investors, according to Pensana Rare Earths founder and Chairman Paul Atherley in a recent interview with Platts.
London-listed Pensana is building an integrated mine-to-magnet rare earth supply chain, anchored by its wholly owned Longonjo mine in Angola. As of March 3, construction is well underway at Longonjo, with both on-site and off-site engineering progressing and a 12-month period of intensive development anticipated.
In October, Pensana abandoned plans for a GBP250 million rare earth processing refinery at the Saltend Chemical Park in the Humber Freeport near Hull, opting instead to pursue a US-based downstream facility. The UK government’s offer of up to GBP4 million in grant support was described by Atherley as insufficient compared to the substantial backing available in the US.
“We lacked financial backing for the separation facility in the UK, whereas the US is offering robust support for the rare earth magnet metal supply chain,” Atherley said.
Pensana’s strategic pivot to the US is underpinned by strong government support for rare earth magnet supply chains and the development of industry pricing mechanisms through initiatives such as Project Vault. This shift followed the company’s receipt of a letter of interest from the US Export-Import (EXIM) Bank for a debt funding package of up to $160 million to advance the Longonjo project.
“There's lots of talk around studies and policy [in the UK], but really, the action is where governments are deploying capital and Australia and the US are leading the charge in that regard, he added.
Since January 2025, the Trump administration has prioritized deploying federal funding, expediting permitting processes, and establishing bilateral partnerships to strengthen supply chains and reduce reliance on foreign sources. This policy shift has resulted in a marked increase in US financing activity, driven by the Departments of Defense, Commerce, and Energy, as well as the International Development Finance Corporation and EXIM Bank.
Atherley noted that since announcing its US supply chain plans, Pensana has experienced a surge in offtake enquiries from a broad range of industries — including defense, data centers, electric vehicles, and even humanoid robotics — all seeking secure offtake agreements. He confirmed that several memoranda of understanding have been signed with various parties, with the intention of converting them into binding agreements as construction at Longonjo progresses.
He added that the development of the Lobito Corridor and other Angolan export infrastructure will further enhance Longonjo’s logistical advantages and strategic positioning within African mineral supply chains.
“If you are an OEM looking to sign a five-year contract for rare earth-based magnet supply, would you really risk sourcing magnets from China right now? The reality is you probably wouldn’t,” Atherley observed.
The project is on track for commissioning and first production in 2027. According to the company, Longonjo will produce an initial 2,400 mt/year of light magnet metals, namely neodymium-praseodymium (NdPr), and 73 mt/year of heavy magnet metals, namely dysprosium-terbium (DyTb), in the form of clean high-value mixed rare earth carbonate (MREC). The company plans to double production to 4,200 mt/year of NdPr and 122 mt/year of DyTb beyond 2030.
Addressing suggestions that China holds an exclusive technological advantage in rare earth processing and magnet production, Atherley stated, “We dispute that. They may have some patents in terms of magnets, but in terms of technology, we don’t see any exclusive benefit. Pensana and its downstream partners are not constrained by technology in rare earth processing or magnet production.”
"The recent commissioning of the e-VAC advanced magnets facility in Sumter, South Carolina, is a good example of the US establishing word-class magnet production by a company that clearly has the technology -its parent has been producing magnets in Germany for over 100 years,” Atherley said.
Pensana’s progress comes as Western governments and technology manufacturers intensify efforts to diversify critical minerals supply chains away from Chinese producers. China controls nearly 60% of global rare-earth mining, more than 85% of processing capacity, and over 90% of permanent-magnet production, according to the US Department of Commerce.
Platts, part of S&P Global Energy, has proposed four first-of-their-kind price assessments for rare earth elements, focusing on mine-to-industry alternative supply chains. The new assessments are scheduled to take effect on March 31, 2026, adding to Platts' comprehensive suite of battery material assessments.
Source: www.pensana.co.uk
Aleksei Andrievskii is the founder of the ANDRIEVSKII SEA WEALTH family office in Cyprus, a member of the advisory board at Bendura Bank AG, Liechtenstein