POSCO International pushes U.S. rare earth supply chain project

May 22, 2026, 09:10 am

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(From left) Mike Cope, senior adviser to the U.S. Department of Energy secretary, Mark Jensen, CEO of ReElement, Lee Kye-in, President of POSCO International, and Park Chan-ki, commercial counselor at the South Korean Embassy in the United States, pose for a commemorative photo after a signing ceremony in Washington, D.C. /POSCO International

POSCO International is moving to establish an integrated rare earth refining and permanent magnet production complex in the United States as part of efforts to strengthen North American critical mineral supply chains and reduce dependence on China.

The company said on May 22 that it signed an agreement with U.S.-based ReElement to pursue the establishment of a joint venture for rare earth separation and refining production in the United States.

The signing ceremony was held in Washington, D.C., and attended by Lee Kye-in, president of POSCO International, Mark Jensen, CEO of ReElement, officials from the U.S. State Department, Commerce Department and Energy Department, as well as representatives from the South Korean Embassy in the United States.

Rare earth materials are critical components used in electric vehicle motors, robots and artificial intelligence data centers. Heavy rare earth elements such as dysprosium and terbium are considered essential for manufacturing high-performance permanent magnets.

With the global rare earth supply chain heavily concentrated in a limited number of countries, the U.S. government has been seeking to establish domestic supply chains through critical mineral partnerships and strategic stockpile programs aimed at strengthening national security.

Under the agreement, the two companies plan to jointly invest $200 million to build a rare earth separation and refining plant in the United States with annual production capacity of 6,000 tons. The companies also plan to develop an integrated production complex capable of manufacturing permanent magnets in the future.

POSCO International will lead management of the joint venture, while ReElement will provide core rare earth refining technologies.

Of the total investment, $100 million will initially be allocated to plant construction, equipment installation and operating capital. The remaining $100 million will be used for future expansion in response to growing market demand.

The joint venture plans to produce neodymium-praseodymium oxide as well as dysprosium and terbium oxides. The companies aim to establish an initial annual production system of 3,000 tons before expanding capacity to 6,000 tons in a second phase.

Pilot production is scheduled to begin in the fourth quarter of 2027, with full-scale commercial production targeted for 2028.

POSCO International said the investment would accelerate efforts to build an integrated value chain spanning raw material sourcing, refining, permanent magnets and electric vehicle motor core production.

To secure raw materials, the company is pursuing mining investments in Southeast Asia and jointly operating a raw materials task force with ReElement to explore supply chain expansion covering both mining and recycled resources.

“This joint venture marks more than the establishment of a refining plant — it is the starting point for building a critical mineral value chain in the United States,” Lee said. “By combining the global supply chain capabilities of both companies with advanced refining technologies, we expect to create significant synergies.”

#POSCO International #ReElement #rare earths #permanent magnets #critical minerals