A model eco-friendly vehicle equipped with a POSCO International drive motor (Photo provided by POSCO International)
SEOUL, Sept. 19 (Korea Bizwire) — POSCO International Corp., the trading arm of POSCO Group, said Friday it has signed an initial agreement with U.S.-based ReElement Technologies Corp. to strengthen its rare earth supply chains.
ReElement, a subsidiary of American Resources Corp., and POSCO International also agreed to explore cooperation in establishing an integrated rare earth and permanent-magnet production complex in the United States, the company said in a press release.
Under a memorandum of understanding, POSCO International will oversee the sourcing of rare earth intermediate materials and permanent-magnet operations, while ReElement will provide advanced separation, refining and recycling technologies.
“By combining our patented refining technology with POSCO’s industrial capabilities, we are scaling rare earth processing and strengthening the U.S.-Korea partnership to build resilient and sustainable supply chains for critical materials,” ReElement Technologies Chief Executive Officer (CEO) Mark Jensen said in the release.
The planned facility is expected to be the first in the U.S. to achieve full vertical integration of rare earth and permanent magnet production within an industrial complex, the release said.
POSCO International secured an order in March 2024 to supply 7,700 tons of permanent magnets, a key component for electric vehicles (EVs), to a U.S. automaker between 2026 and 2031.
In the same month, it also received an order to deliver 800 tons of permanent magnets to a European auto brand by 2034.
The company did not disclose the names of the clients or the value of the contracts, citing confidentiality agreements.
(Yonhap)
