Based on the Wilton International Site, the proposal is for a refinery which expects to start production in 2019 and will create around 100 new jobs. The product will ultimately be used in a range of goods, including mobile phones, wind turbines and for the automotive sector.
Following a global search of over 25 countries, Tees Valley was selected as the preferred location. The company cited ‘access to global shipping, cheap and reliable bulk reagent supplies, a skilled labour force, readily available power and water’ as some of the reasons for its decision.
Councillor Sue Jeffrey, leader of Redcar and Cleveland Borough Council and Member of Tees Valley Combined Authority, said: "The Combined Authority has worked and will continue to work closely with Peak Resources to support its project in Tees Valley.
"It is great that our area has been recognised as a preferred location by a company from the other side of the world, signalling a very clear indication of our global reputation for successful manufacturing."
Darren Townsend, managing director of Peak Resources, said: "The choice of Tees Valley as the location for a Rare Earth Refinery is compelling.
"Whilst the long-term impact of Brexit is not yet fully understood, the devaluation of the Pound is expected to improve operating costs and the UK’s progressive stance on maintaining competitive corporate fiscal regimes post Brexit are both positives."