News & Media

Pensana is developing the Longonjo rare earth project - one of the world's largest and highest-grade rare earth deposits in Angola. The MoU outlines a framework for a long-term partnership that combines Pensana's world-class mineral resource with ReElement's industry-leading refining platform to create a globally competitive, sustainable, and independent rare earth supply chain.

Key terms of the MOU include:

• A shared commitment to developing a collaborative partnership aimed at establishing a sustainable, non-China rare earth supply chain to meet the rising global demand.
• A proposed offtake of up to 20,000 tpa of ultra-clean mixed rare earth carbonate (MREC) from the Longonjo mine over a five-year period, with pricing to be agreed.
• Strategic cooperation between ReElement and Pensana to strengthen and secure the global rare earth value chain and explore additional joint opportunities.
• Leverage of the Lobito Corridor in Angola for low-cost, efficient access to global export markets.
• Integration of ReElement's advanced refining platform, which offers a high-throughput, low-waste, and cost-effective process to produce ultra-pure separated rare earth oxides.

Since 2023, ReElement has been refining rare earth materials commercially and for customer validation at its Noblesville, Indiana facility. The company continues to expand capacity, including major development at its large-scale Marion, Indiana supersite, to meet growing demand from U.S. and allied defense and commercial industries.

Mark Jensen, CEO and Chairman of ReElement, commented, "Our partnership and MOU with Pensana represents a major advancement toward building a true mine-to-magnet global rare earth supply chain.

“Securing mineral independence requires innovation, not imitation - and legacy solvent-based refining methods simply won't be competitive or scalable in the modern market.

“ReElement's multi-mineral refining platform is uniquely positioned to unlock this opportunity with efficiency, flexibility, and global collaboration. We are excited to begin working with Pensana immediately given their vast reserves and production capabilities in Angola, a region that is aligned with US interests in Africa."

Tim George, CEO of Pensana, added, "We're thrilled to begin our collaboration with ReElement. Both of our teams share a clear vision for establishing an efficient, scalable, and enduring supply chain for magnet-grade rare earths - critical to meeting the accelerating global demand."

The signing of this MoU marks another key milestone in Pensana's journey to deliver rare earth products into the global value chain and underscores the company's commitment to building a resilient and sustainable supply network.

The Longonjo rare earth project

Pensana has spent over US$70 million over the past six years on exploration, technical and environmental studies on Longonjo. The company has successfully delineated a near surface JORC compliant reserve of 22 Mt grading 3.04% TREO containing 139,457 t of NdPrO, making it one of the world's largest and highest grade, undeveloped magnet metal rare earth deposits with a mine life of over 20 years.

The electrification of motive power is arguably the biggest energy transition in history and needs rare earths for permanent magnets. Initial production will be 20,000 t of a highly marketable clean MREC.

RELATED: The US vs China: the race for Africa’s critical minerals

A proposed second phase expansion will see production increase to 40,000 tpa of MREC representing around 5% of the world's production capable of being converted into permanent magnets for electric vehicles and offshore wind turbines.

RELATED: EU adds 13 new critical minerals for supply chain resilience

The company is committed to developing the Longonjo mine to the very best international standards with the highest level of community engagement and has published a blueprint for sustainable rare earth development.

The team's efforts were recognized in 2022 when Pensana received green bond assurance by S&P Green Bond Rating Agency CICERO and more recently were awarded a Gold Medal by EcoVadis, a leading sustainability ratings provider, placing it among the top 5% of the companies assessed.