Pensana and The Yorkshire Energy Park (YEP), at an on-site event on November 17, signed a letter of intent for the site of a future permanent magnet metal facility within the park.

The YEP is located adjacent to the Saltend Chemicals Park in the Humber Freeport UK.

The letter of intent with the 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, research and development and supply chain activities.

The event was also attended by the Vice Chancellor of Lincoln University, which is working with Pensana and the YEP to create a regional specialised centre of engineering excellence, training and higher education on the YEP for the Humber region.

By 2030, the UK is expected to have transitioned from being a major European producer of internal combustion engines (ICEs) to being a leader in the manufacture of electric drive units. Without a secure magnet metal supply chain, this transition is under threat, Pensana posits.

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 partnership between the 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 ICEs to be a world leader in the manufacture of electric drive units,” Pensana chairperson Paul Atherley says.

“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,” YEP chairperson Chris Turner highlights.