UK-listed rare earth mining company Mkango Resources has unveiled a partnership with the European Raw Materials Alliance (ERMA) to develop the rare earth separation plant in Pulawy, Poland.

The company said in a statement that the plant would be supplied with rare-earth carbonate originating from Mkango's Songwe Hill primary deposit of rare earth elements in Malawi.

It also noted that the plant could process other materials supplied by third-party providers and act as a future European hub for rare earth elements separation.

The Puławy project will aid the creation of a secure supply chain option for neodymium, praseodymium, dysprosium, and terbium for the European Union, which are critical for the region's energy transition.

Massimo Gasparon, director of ERMA, said that while it is the body's responsibility to secure raw materials for Europe, it cannot do so without collaboration with partners.

"The Puławy project is one of the first ERMA projects to get the green light to provide critical raw materials needed to fulfill European goals in the green transition while diversifying the supply chain in the long term," Gasparon said.

William Dawes, chief executive officer of Mkango Resources, said the company would support the ERMA's creation of a more diverse raw materials value chain.

In December Mkango Resources said it had begun the hydrometallurgy plant pilot for the Songwe Hill Rare Earths project in Malawi.