23rd Jun 2025 12:42
(Alliance News) - Pensana PLC on Monday said it has signed a memorandum of understanding with American Resources Corp and its subsidiary ReElement Technologies, which is a US critical mineral refiner.
Pensana, a rare earths explorer developing rare earth deposits vital for electric vehicles and wind turbines, said the companies have agreed to develop a "sustainable, independent rare earth supply chain" to meet demand from US and allied defence and commercial industries.
The agreement includes a proposed offtake of up to 20,000 tonnes per year of mixed rare earth carbonate from the Longonjo mine over a five-year period, with pricing to be agreed.
Pensana said ReElement's "advanced refining platform" will be integrated into the system, as it is a "low-waste and cost-effective" process to produce separated rare earth oxides.
The two companies said they will cooperate to "strengthen and secure" the global rare earth value chain.
They agreed to use the Lobito corridor in Angola for low-cost, efficient access to global export markets.
ReElement refines rare earth materials for customer validation and commercial sale at its facility in Noblesville, Indiana.
"We are thrilled to begin our collaboration with ReElement. Both teams share a clear vision for establishing an efficient, scalable, and resilient supply chain for magnet-metal rare earths – critical to the US and allied defence and commercial industries," said Pensana Chief Executive Officer Tim George.
"This collaboration with ReElement builds on our recently announced offtake agreement for a similar tonnage of MREC with Toyota Tsusho and our plans for downstream magnet metal production in the UK and Asia. The signing of this MOU marks another important milestone in Pensana's journey to build a globally diversified and resilient magnet metal rare earth supply chain."
Shares in Pensana were down 0.9% at 64.40 pence in London on Monday afternoon.
By Michael Hennessey, Alliance News reporter
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