ReElement Technologies, which happens to be the portfolio company of American Resources Corporation, which is a leading U.S. innovator when it comes to rare earth elements (REE) as well as critical mineral refining, has gone ahead and inked a memorandum of understanding (MOU) along with POSCO International Corporation, which is a global leader when it comes to steel, magnetic materials, and advanced industrial solutions.
The agreement looks forward to strengthening the rare earth supply chain and at the same time also discovering the cooperation in terms of establishing an integrated rare earth and permanent-magnet production complex within the U.S.
The signing ceremony, which was held at the POSCO Center in Seoul, was attended by President & CEO of POSCO International, Kye-In Lee, as well as the CEO of ReElement Technologies, Mark Jensen, in addition to the Director General for Industrial Supply Chain Policy, Na Sung-hwa, and also the U.S. Deputy Ambassador to Korea, Joseph Yun.
The Integrated Rare Earth and Permanent Magnet Production Complex, which has been planned, is going to be the first U.S. facility in order to achieve full vertical integration when it comes to rare earth and permanent-magnet production, and that too in an integrated industrial complex. It is designed so as to manage every stage, right from securing rare earth raw materials as well as conducting separation and refining to manufacturing scrap and also permanent magnets and recycling as well as end-of-life magnets-all within one facility.
Under this collaboration, POSCO International is going to oversee sourcing in terms of rare earth intermediate materials along with the permanent-magnet business, whereas ReElement is going to offer advanced separation and refining as well as recycling technology. The governments of Korea as well as the United States also took the opportunity to discuss potential financial and policy as well as regulatory support should the project go ahead and move into a full-scale execution.
At present, the global rare earth supply chain goes on to depend pretty heavily on a limited number of countries since the rare earth elements happen to be indispensable for industries like semiconductors and electric vehicles as well as wind power, and hence this concentration goes on to pose certain geopolitical risks along with supply-chain uncertainties, which indeed threaten the global industrial balance.
This collaboration looks forward to diversifying as well as de-risking the supply chains, therefore lessening such risks and, at the same time, creating a base in terms of flexible responses for changes in the demand. Through securing a more stable supply in terms of rare earth raw materials and, at the same time, strengthening the permanent-magnet production capabilities, this initiative is sure to help with certain long-term, balanced, as well as agile delivery in terms of critical materials for automakers across the world.
It is well to be noted that POSCO International happens to be already expanding its presence across the global permanent-magnet market. Apparently in 2023, the company went ahead and inked a contract with one of the major North American automakers so as to supply almost 7,700 tons of permanent magnets, which would be enough for approximately 3.85 million electric-vehicle motors between 2026 and 2031.
It also concluded an agreement with one of the premium European automakers in order to supply almost 800 tons-sufficient for almost 400,000 electric-vehicle motors right from 2025 to 2034.
ReElement, apparently, is rapidly advancing its economically viable as well as eco-friendly critical mineral refining platform at its Noblesville Commercial Qualification Facility based in Indiana at its Marion Supersite. Making utmost use of advanced chromatographic separation along with purification methods, ReElement happens to be addressing the most intricate segment when it comes to the supply chain while at the same time, building strategic alliances in order to strengthen the critical mineral supply chains across the globe.
Because of this cooperation, POSCO International also plans to widen its value chain so as to solidify its position as a major supplier of components of electric-vehicle drivetrains. Its future plans include providing complete packages pertaining to all parts that are required for drive-motor-core rotors as well as stators to automakers in the domestic as well as international markets.
According to the President & CEO of POSCO International, Kye-In Lee, this agreement is indeed going to help in strengthening the resource security and, at the same time, diversify supply chains for both Korea and the U.S. It also offers an opportunity to decrease the risks of supply-chain concentration and to go ahead and establish a very balanced system in terms of supplying critical materials across domestic as well as international automakers.
As per the CEO of ReElement Technologies, Mark Jensen, their POSCO partnership marks an important step forward as it will combine their patented refining technology with the industrial capabilities of POSCO and hence scale the rare earth processing and also strengthen the U.S.-Korea partnership in order to build resilient as well as sustainable supply chains when it comes to critical materials. He added that together they are going to be proving that innovation as well as collaboration can indeed roll out very secure and long-term solutions for industries as well as nations that happen to depend on these materials.