Leading sustainable rare earth supply in Europe
The rare earth elements (REE) sector has emerged as one of the most strategically important industries in today’s global economy. As critical inputs for modern technology, these elements play a central role in products ranging from smartphones and medical devices to electric vehicles and wind turbines. Demand for rare earths has been steadily rising, driven by the accelerating shift toward green energy and the ongoing digitalisation of global economies. With clean energy initiatives forming the backbone of future industrial policy in many countries, rare earth elements are increasingly sought after for their role in making energy systems more efficient and less carbon-intensive.
Within the rare earths sector, environmental sustainability is becoming a high priority. Traditional mining processes have often involved intensive water and chemical usage, resulting in significant environmental impact. However, leading companies in the industry are now focusing on reducing these environmental costs, with investments in greener extraction methods and sustainable supply chains. This shift aligns closely with the rising global standards for sustainable mining and resource utilisation, which aim to minimise ecological harm while maximising resource efficiency. Companies employing innovative technologies to reduce waste and energy consumption in extraction processes are setting the standard for future operations in this sector.
Europe has emerged as a key player in the rare earth supply chain, making significant strides towards reducing its reliance on imports. The European Union’s emphasis on securing local supply chains for critical minerals has catalysed support for REE projects within its borders, from mining to refining and recycling. As a result, companies developing rare earth sources in Europe, alongside those establishing efficient processing facilities, are well-positioned to contribute to and benefit from these initiatives. This strategic positioning offers a unique opportunity for companies involved in this supply chain to take advantage of policy-backed growth, as governments prioritise localised rare earth production to ensure a steady supply for their industries.
Pensana, a company based in the UK, is establishing itself as a significant player in this vital field by developing one of Europe’s first rare earth processing facilities, located at the Saltend Chemicals Park in the Humber region. Pensana’s project is designed to support the EU and UK’s transition to cleaner energy by providing locally refined rare earth oxides critical for the production of permanent magnets used in electric vehicles and wind turbines. With a focus on sustainable practices, Pensana’s facility aims to reduce reliance on overseas supply, creating a resilient, locally driven source for these essential materials. Through its commitment to sustainable and strategic sourcing, Pensana is positioning itself as a key contributor to Europe’s clean energy and technological future.
