Posco International, the trading and energy arm of Posco Group, announced a strategic joint venture with US-based ReElement Technologies to establish a rare earth separation and refining facility in the United States. This significant partnership aims to bolster the critical minerals supply chain for high-tech industries.
An agreement was officially signed in Washington on Thursday, marking a pivotal step towards enhancing domestic rare earth production. The new US facility will focus on refining essential rare earth elements crucial for advanced technologies.
The signing ceremony underscored the strategic importance of this collaboration, with attendance from key figures including Posco International CEO Lee Kye-in and ReElement CEO Mark Jensen. Senior officials from the US State, Commerce, and Energy Departments, alongside representatives from the South Korean Embassy in Washington, also participated, highlighting strong governmental support.
Under this landmark agreement, the two companies will jointly invest $200 million to construct a state-of-the-art rare earth separation and refining plant in the US. This facility is projected to achieve an annual production capacity of 6,000 tons. Furthermore, the partners plan to develop an integrated production complex dedicated to manufacturing permanent magnets, a critical component in electric vehicles and renewable energy systems.
Posco International, as the largest shareholder, will spearhead the joint venture’s management, leveraging its extensive global supply chain expertise. ReElement Technologies will contribute its proprietary core rare earth separation and refining technologies, ensuring efficient and advanced processing capabilities.
The joint venture’s production will include neodymium-praseodymium (NdPr) oxide, a vital material for high-performance permanent magnets, as well as essential heavy rare earth oxides like dysprosium and terbium. These materials are indispensable for next-generation technologies and clean energy solutions.
Initial operations will commence with an annual capacity of 3,000 tons, strategically scaling up to 6,000 tons in a subsequent phase to meet growing demand. Pilot production is slated for the fourth quarter of 2027, with full-scale commercial production anticipated by 2028, establishing a robust timeline for market entry.
The $200 million total investment is structured in two equal tranches. The initial $100 million will cover facility construction, equipment procurement, and essential operating expenses. The subsequent $100 million is reserved for future expansion, contingent on evolving market conditions and demand, ensuring flexibility and growth potential.
This agreement officially launches the “Boiler Maker Project,” a comprehensive initiative for rare earth and permanent magnet production. The project was initially outlined in a memorandum of understanding (MOU) signed by both companies in September of the previous year, demonstrating a sustained commitment to this strategic partnership.
Lee Kye-in, CEO of Posco International, emphasized the broader impact of the venture: “This joint venture transcends the construction of a mere refining plant; it signifies the crucial starting point for establishing a comprehensive US-based critical minerals value chain, spanning from raw material sourcing to final product manufacturing. The synergy between both companies’ global supply chains and innovative refining technologies is expected to be profound.”
Mark Jensen, CEO of ReElement Technologies, further highlighted the collaborative benefits, stating, “Together, both companies will forge a stable supply chain that is vital for national security, accelerates clean energy initiatives, and supports the development of next-generation advanced technologies.”
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