Seoul: POSCO International Corp., the trading arm of POSCO Group, announced it has signed an initial agreement with U.S.-based ReElement Technologies Corp. to enhance its rare earth supply chains. The collaboration aims to explore the establishment of an integrated rare earth and permanent-magnet production complex in the United States.

According to Yonhap News Agency, ReElement, a subsidiary of American Resources Corp., and POSCO International have agreed on a memorandum of understanding where POSCO International will manage the sourcing of rare earth intermediate materials and permanent-magnet operations. ReElement will contribute its advanced separation, refining, and recycling technologies to the partnership.

ReElement Technologies CEO Mark Jensen highlighted the synergy, stating that the integration of their patented refining technology with POSCO's industrial capabilities aims to scale rare earth processing and reinforce the U.S.-Korea partnership for sustainable supply chains.

The facility, once completed, 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. This development aligns with POSCO International's strategic moves, as evidenced by their secured order in March 2024 to supply 7,700 tons of permanent magnets for electric vehicles to a U.S. automaker over a five-year period, starting from 2026. Additionally, they have an order to deliver 800 tons of permanent magnets to a European auto brand by 2034.

Details regarding the names of the clients or the value of the contracts remain undisclosed due to confidentiality agreements.