UK Rare Earths Refinery Plans Ditched for US Investment Amid Shift in Global Strategy

Breaking News: UK Rare Earths Refinery Plans Scrapped in Favor of US Investment Pensana, the company behind a proposed rare earths refinery at Saltend Chemicals Park in Hull, East Yorkshire, has abandoned its plans to invest in the UK. Instead, the company will seek investment in the United States. Key Details: The project, valued at £268 million, aimed to process raw materials from Angola into metals used for high-tech applications. The refinery was expected to begin operations in 2027, with Pensana's mine in Angola set to deliver raw materials by the same year. The decision marks a significant blow to the UK's ambitions to establish itself as a major player in the rare earths industry. Immediate Impact: The cancellation of the project will likely have immediate implications for the local economy and jobs. The Saltend Chemicals Park was expected to create hundreds of new employment opportunities, but these plans are now uncertain. Background Context: Rare earths are not as rare as their name suggests. They are a group of chemically similar minerals that are abundant in the Earth's crust but difficult to extract and process. China currently dominates the global rare earths market, with the UK seeking to establish itself as a competitor. What Happens Next: Pensana will now focus on securing investment for its refinery project in the United States. The company has not commented on whether it will continue to pursue its plans for the Saltend Chemicals Park site. The UK government has been keen to support the development of the rare earths industry, and this decision is likely to raise questions about the country's ability to attract investment in critical industries. In a statement, Theo Leggett, business correspondent at Burnstuff2003 GETTY, said: "The cancellation of the Pensana project is a significant setback for the UK's ambitions in the rare earths industry. The government will need to consider how it can support companies like Pensana and attract investment in critical industries." *This story is developing. Information compiled from Bbc reporting.*