News that the US Biden Administration is considering an investigation into the national security implications of relying on China to import rare earth magnets – and whether to impose tariffs – has been a long time coming. The White House is considering launching a probe through its commerce department to delve deeper into the use of neodymium magnets which are the critical components used in electric vehicles, smartphones and offshore wind turbines; the very products Pensana will deliver by establishing its sustainable UK supply chain. According to an official speaking to The Financial Times, President Biden wants to host a forum with US allies to boost supply chain cooperation and he is expected to discuss it at an EU-US summit in Brussels next week. “If the tariffs are high enough, that could provide financial incentives to build up a US domestic industry,” said Martijn Rasser, a technology expert at the Center for a New American Security in Washington, speaking to The Financial Times.
Pensana’s Chairman Paul Atherley said: “It is very encouraging to see the US following the EU and UK’s lead in highlighting the urgent need to establish an independent and sustainable magnet metal supply chain. Pensana is on the ground at the Saltend Chemicals Park in the Humber Freeport working with the UK Government and local stakeholders setting out the world’s first sustainable rare earth processing hub, that will supply the UK and European supply chains.”
