Construction at Longonjo on Track for First Production in 2027

Why It Matters

First‑of‑its‑kind western‑aligned rare‑earth supply from Angola could reduce US reliance on Chinese sources and lock in higher‑margin pricing amid strong demand.

Key Takeaways

• Construction on schedule, first output 2027.
• Initial output 2,400t NdPr, 73t DyTb yearly.
• Production to double after 2030 for NdPr and DyTb.
• Hydroelectric power and Lobito rail ensure low‑cost logistics.
• US‑focused mine‑to‑magnet supply chain under advanced talks.

Pulse Analysis

The global rare‑earth market is tightening as demand from electric‑vehicle, defense, and data‑center sectors outpaces supply, prompting governments to seek secure, non‑Chinese sources. Angola’s Longonjo deposit, with over 300 million tonnes of resources, positions the country as a potential cornerstone of a diversified supply chain. Pensana’s aggressive construction timeline reflects both the strategic urgency and the confidence that modern, low‑cost hydroelectric power can deliver competitive production costs.

Longonjo’s design leverages the Luaca dam’s renewable electricity and the Lobito corridor rail, which connects the inland mine to the Atlantic port and the broader US‑backed logistics network. This infrastructure reduces transportation expenses and carbon intensity, aligning with ESG expectations of downstream manufacturers. The initial output of 2,400 t of NdPr and 73 t of DyTb will already place Pensana among the few western‑oriented producers of heavy rare‑earths, a segment historically dominated by China.

Beyond the physical assets, Pensana is forging a US‑centric mine‑to‑magnet ecosystem, partnering with firms such as ReElement, Hanwa, Toyota Tsusho, and VACUUMSCHMELZE, and engaging defense‑linked magnet producers. These collaborations aim to secure a reliable feedstock for high‑performance magnets used in aerospace, automotive, and data‑infrastructure applications. If the projected production scaling and heavy‑rare‑earth recovery enhancements materialize, the project could generate an additional $155 million in revenue, reinforcing its strategic value and offering the United States a more resilient critical‑minerals supply chain.