POSCO International corporate logo / Courtesy of POSCO International
POSCO International is making an aggressive push into America’s strategic minerals race, announcing plans to build the first integrated rare earth and permanent magnet production complex in the United States as Washington scrambles to reduce dependence on China-dominated supply chains.
The Korean trading and energy company said Friday it signed an agreement Wednesday in Washington with ReElement Technologies Corp. to establish a joint venture for rare earth separation and refining production in the United States.
The project calls for a combined investment of $200 million to build a rare earth separation facility capable of producing 6,000 tons annually, with plans to later expand into permanent magnet manufacturing.
POSCO International said it would lead management of the joint venture as the largest shareholder, while ReElement would provide core refining technologies.
The signing ceremony was attended by POSCO International CEO Lee Kye-in, ReElement CEO Mark Jensen, senior officials from the U.S. departments of State, Commerce and Energy, and representatives from the Korean Embassy in Washington.
The companies said $100 million will initially be invested in plant construction, equipment and operating costs, while the remaining $100 million will be used for future expansion depending on market demand.
The venture, dubbed the “Boiler Maker Project,” moves into a full-scale execution phase after the two companies signed a memorandum of understanding in September under the supervision of Korea’s Ministry of Trade, Industry and Energy.
Rare earth materials such as dysprosium and terbium are considered essential for high-performance permanent magnets used in electric vehicle motors, robotics and artificial intelligence data centers.
POSCO International said the project aims to establish a full supply chain spanning Southeast Asian raw material sourcing, U.S.-based refining and permanent magnet production.
Source: Korea Times News
