Pensana and Hanwa secure strategic partnership for Rare Earths supply

Pensana, a London-listed rare earths mining company, has entered into a nonbinding memorandum of understanding (MoU) with Japanese trading group Hanwa Co., Ltd. The agreement will allow Hanwa to offtake up to 20,000 tonnes annually of mixed rare earth carbonate (MREC), a key material used in magnet metals.

Pensana holds an 84% stake in the Longonjo neodymium and praseodymium project in Angola, which is expected to produce 20,000 tonnes of MREC per year by 2026, with plans to double that capacity by 2029 through expansion. Both companies plan to collaborate on marketing, distribution, and establishing a sustainable supply chain for magnet metals on a global scale.

Paul Atherley, Pensana’s chairman, expressed his enthusiasm for the collaboration with Hanwa, noting that the partnership aims to create a long-term, reliable source of high-quality magnet metal products from Angola. Beyond the offtake arrangement, Hanwa is exploring the potential to provide financial support to Pensana and its projects, including the planned Coola and Sulima west expansion. This includes a separation and metallisation project that aims to enhance the company’s production capabilities.

Hanwa is also considering a broader investment in Pensana’s operations, both upstream and downstream, to help develop a low-carbon magnet metal supply chain. This would not only benefit Hanwa’s customers but also future partners. The Japanese trading company, which manages a wide array of commodities, is increasingly focused on metals and chemicals for electric and fuel cell vehicles. Hanwa has a market capitalisation of JPY215.9 billion ($1.5 billion) and sees this partnership as a key opportunity to strengthen its position in the growing market for electric vehicle materials.

This partnership sets the stage for a significant boost in rare earth production and highlights the strategic importance of creating sustainable supply chains for critical materials used in modern technology.

Pensana plc (LON:PRE) explores and mines neodymium, praseodymium, and rare earth minerals. The Company’s flagship assets are the Saltend rare earth refinery project in the United Kingdom and Longonjo neodymium and praseodymium (NdPr) Project in Angola.

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