POSCO International to build U.S. rare earths supply chain

POSCO International and ReElement Technologies signed an agreement in Washington, D.C., on May 22 to establish a joint venture focused on rare earth separation and refining in the United States. The partnership, attended by CEOs Lee Kye-in and Mark Jensen along with U.S. and South Korean officials, will invest $200 million to construct a plant with an initial annual capacity of 3,000 tons, later expanding to 6,000 tons. The facility will produce neodymium-praseodymium oxide, dysprosium oxide, and terbium oxide, essential for high-performance permanent magnets used in electric vehicle motors, robots, and AI data centers. POSCO International will manage the joint venture, while ReElement Technologies will provide core technology for separation and refining. Trial production is scheduled for the fourth quarter of 2027, with full-scale production targeted for 2028. The project aligns with POSCO International’s broader strategy to develop an integrated value chain, covering raw material sourcing, refining, permanent magnets, and electric vehicle motor cores. The venture marks a critical step in securing the U.S. supply chain for rare earth materials, reducing dependence on foreign sources. Heavy rare earths like dysprosium and terbium are particularly vital for advanced applications, including electric vehicles and renewable energy technologies.