UK suffers blow in bid to become minerals superpower - as it's snubbed by its own leading firm

Britain's hopes of becoming a captious minerals superpower person been dealt a terrible stroke aft 1 of its starring companies abandoned its plans to physique a uncommon earths refinery adjacent Hull.

Pensana had pledged to physique a £250m refinery connected the banks of the Humber, to process uncommon earths that would person past been utilized to marque magnets for electrical cars and upwind turbines.

The works promised to make 126 jobs and was owed to person millions of pounds of authorities funding.

However, Sky News has learnt that Pensana has decided to scrap the Hull works and volition alternatively determination its refining operations to the US.

Pensana's chairman, Paul Atherley, said the institution had taken the determination aft the Trump medication committed to buying uncommon earths from an American mine, Mountain Pass, astatine a guaranteed terms - thing nary authorities successful Europe had done.

"That's repriced the marketplace - and Washington is looking to bash much of these deals, moving astatine an implicit complaint of knots," helium said.

"Europe and the UK person been talking astir captious minerals for ages. But erstwhile the Americans bash it, they spell large and hard, and marque it happen. We don't; we mostly conscionable speech astir it."

The determination comes astatine a important juncture successful captious minerals and geopolitics. China produces astir 90% of each finished uncommon world metals - exotic elements indispensable for the manufacture of galore technology, vigor and subject products.

Last week, Beijing imposed restrictions connected the exports of uncommon earths, prompting Donald Trump to endanger further 100% tariffs connected China.

Pensana had been seen arsenic Britain's reply to the periodic panics astir the availability of uncommon earths. The tract astatine Saltend Chemicals Park was chosen by the authorities to motorboat its captious minerals strategy successful 2022.

Visiting for the authoritative groundbreaking, the past concern and vigor caput Kwasi Kwarteng said: "This unthinkable installation volition beryllium the lone 1 of its benignant successful Europe and volition assistance unafraid the resilience of Britain's supplies into the future."

He pledged a authorities assistance to enactment the scheme. That assistance was ne'er received due to the fact that Pensana ne'er built its plant.

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Mr Atherley said helium is optimistic astir different task he's progressive with, to bring lithium refining to Teesside done different company, Tees Valley Lithium.

But, helium said, uncommon world processing is acold much complex, energy-intensive and expensive, making it unviable successful the UK, for the clip being.

The determination is simply a further stroke for Britain's chemicals industry, which has faced a bid of closures successful caller months, including that of Vivergo, a biofuels refiner based successful the aforesaid chemicals parkland wherever Pensana planned to find its refinery.

Producers pass that Britain's grounds vigor costs - higher than astir different starring economies - are stifling its system and triggering an outflow of businesses.