Highlights

• Pensana Plc has secured $268 million in sovereign and institutional funding to develop its Longonjo rare earth project in Angola, achieving full Stage 1 capex coverage before production.
• The company’s MOU with ReElement Technologies creates a potential U.S. downstream processing route, supporting allied efforts to diversify rare earth supply chains away from China's 90% global control.
• With NdPr demand projected to surge sevenfold by 2050, Pensana's mine-to-magnet capability positions it as a strategic supplier of critical magnet metals to Western EV and wind energy manufacturers.

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Pensana Plc (opens in a new tab) (LSE: PRE) has entered a new chapter in the global race for rare earth independence. Stonegate Capital Partners’ (opens in a new tab) Initiation of Coverage report (Oct. 15, 2025) positions the company as one of the few Western contenders capable of delivering a full mine-to-magnet supply chain outside China—a feat long on policy wish lists but short on execution.

A Fully Funded Vision

At the core of Stonegate’s optimism is financial certainty. Backing from Angola’s sovereign wealth fund (FSDEA), the African Finance Corporation, and Absa Bank totals roughly $268 million, covering Pensana’s $217 million Stage 1 capex for the Longonjo rare earth project. Construction activity has begun, supported by the Lobito Corridor’s rail and hydropower, which underpin competitive logistics and a smaller carbon footprint. For investors, this marks the rarest of milestones in the junior sector—funding before full production.

Bridging Angola and America

Pensana’s Memorandum of Understanding with ReElement Technologies signals more than a partnership; it sketches a possible U.S. downstream route for refining and separation of Longonjo feedstock. While still preliminary, the collaboration aligns with U.S. and allied goals of diversifying rare-earth processing away from China, which retains about 90 percent of global separation capacity. Pensana could thus become a model for “friend-shored” magnet materials.

Market Momentum

The report reinforces the long-term magnet-metal thesis: demand for neodymium-praseodymium (NdPr)—critical to EV motors and offshore wind—is expected to surge more than sevenfold by 2050. Pensana’s ability to produce separated oxides, not just concentrates, means higher margins and strategic leverage as Western manufacturers scramble for secure supply.

The Investor View

With sovereign-level financing, infrastructure integration, and downstream ambitions spanning Angola and the UK, Pensana now occupies a rare position: a non-Chinese producer poised to deliver critical magnet metals into allied markets. Execution risk remains—permits, ramp-up, and pricing volatility—but the fundamentals have shifted. Pensana’s story has advanced from aspiration to implementation.

Source: Stonegate Capital Partners, Initiation of Coverage – Pensana Plc (LSE: PRE), October 15, 2025.

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