Posco Holdings, the South Korean steel and chemicals group, has signed a memorandum of understanding (MOU) with ReElement Technologies, a subsidiary of US mining company American Resources Corporation, to join forces in the production of rare earth elements and magnets, which are widely used in electric vehicle (EV) powertrains and electronic components.
The two companies aim to reduce the industry’s dependence on Chinese supply chains, by establishing alternative supplies of rare-earth materials. They also plan to establish a jointly-owned integrated rare-earth and permanent-magnet production operation in the US.
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The agreement was signed at an event held at Posco’s headquarters in Seoul, attended by Posco’s CEO, Kye-In Lee; ReElement Technologies CEO, Mark Jensen; Director General for Industrial Supply Chain Policy, Na Sung-hwa; and the US Deputy Ambassador to South Korea, Joseph Yun.
Posco and ReElement confirmed they plan to establish the US’s first fully vertically-integrated rare earth and permanent magnet production complex, located within a single integrated industrial complex. It will include all stages of production, from securing rare-earth raw materials and conducting separation and refining, to manufacturing permanent magnets, and also recycling production scrap and end-of-life magnets.
Under the proposed partnership, Posco will oversee the sourcing of rare-earth intermediate materials and the permanent-magnet business, while ReElement will provide advanced separation, refining, and recycling technologies.
Kye-In Lee, confirmed in a statement: “The agreement will help strengthen resource security and diversify supply chains in both South Korea and the US. It provides an opportunity to reduce the risks of supply-chain concentration and to establish a stable system for supplying critical materials to domestic and global automakers.”
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By GlobalDataMark Jensen added: “Our collaboration with Posco marks an important step forward. By combining our patented refining technology with Posco’s industrial capabilities, we are scaling rare earth processing and strengthening the US-Korea partnership to build resilient and sustainable supply chains for critical materials. Together, we are proving that innovation and collaboration can deliver secure, long-term solutions for industries and nations that depend on these materials.”
