Mkango said the planned facility will targeting production of 2,000 t/yr separated neodymium (Nd) / praseodymium (Pr) oxides, and 50 t/yr dysprosium (Dy) and terbium (Tb) oxides.
The planned location on Grupa Azoty Pulawy's fertiliser and chemicals complex near the eastern city of Pulawy, will provide easy access to reagents and utilities on site, said the company
The rare earth carbonate feedstock for the plant will be sourced from Mkango's Songwe Hill operations in Malawi.
William Dawes, Chief Executive of Mkango said the company's "mine, refine, recycle" strategy was "enhanced by the opportunity to create a rare earths separation and downstream hub in Poland, working with one of Europe's largest chemical and fertilizer companies".
Mkango is also developing rare earth magnet (NdFeB) recycling in the UK through its HyProMag venture.
AIM-listed Mkango controls a 25% stake in rare-earth recycling company HyProMag through a subsidary, and there is an option to increase the holding to 49%.