Posco International to Establish Rare Earth and Permanent Magnet Production Complex in the U.S.

MOU Signed with ReElement Technologies in the U.S.

Posco International is moving forward with plans to establish an integrated production complex for rare earth elements and permanent magnets in the United States.

According to industry sources on September 19, Posco International signed a memorandum of understanding (MOU) with U.S.-based ReElement Technologies the previous day to strengthen the rare earth supply chain.

Posco International signed a memorandum of understanding (MOU) with U.S.-based ReElement Technologies on the 18th to strengthen the rare earth supply chain.

The integrated production complex will be capable of handling all stages, including securing rare earth raw materials, separation and refinement, manufacturing permanent magnets, and recycling manufacturing scrap and end-of-life magnets.

Posco International will oversee the procurement of rare earth intermediates and the permanent magnet business, while ReElement Technologies will provide separation, refinement, and recycling technologies. This collaboration aims to diversify the rare earth supply chain, mitigate concentrated risks, and establish a foundation for flexible responses to future changes in demand.

Posco International has signed a contract with major North American automobile manufacturers to supply approximately 7,700 tons of permanent magnets required for about 3.85 million electric vehicle motors from 2026 to 2031. Additionally, the company has previously signed a contract with European automobile manufacturers to supply about 800 tons for approximately 400,000 electric vehicle motors from 2025 to 2034.

Lee Gyein, CEO of Posco International, stated, "This agreement will help strengthen resource security and diversify supply chains for both Korea and the United States. It is an opportunity to reduce the risks associated with supply chain concentration and to establish a system for the stable supply of key materials to domestic and international automobile manufacturers."

Mark Jensen, CEO of ReElement Technologies, commented, "Our collaboration with Posco marks significant progress. By combining our patented refining technologies with Posco's industrial capabilities, we are expanding rare earth processing capacity and strengthening the Korea-U.S. partnership to build a resilient and sustainable supply chain for critical materials."