POSCO International to build U.S. rare earths supply chain
May 22 (Asia Today) -- POSCO International said Friday it plans to enter the U.S. rare earth separation, refining and permanent magnet business through a joint investment with ReElement Technologies.
The South Korean trading company said it signed an agreement with the U.S. firm to pursue a joint venture for rare earth separation and refining production in the United States.
The signing ceremony was held in Washington, D.C., with POSCO International CEO Lee Kye-in, ReElement Technologies CEO Mark Jensen, U.S. government officials and South Korean Embassy officials in attendance.
The companies plan to jointly invest $200 million to build a rare earth separation and refining plant with annual capacity of 6,000 tons. They also plan to develop an integrated production complex that can later produce permanent magnets.
Rare earth materials are used in electric vehicle motors, robots and artificial intelligence data centers. Heavy rare earths such as dysprosium and terbium are considered essential for high-performance permanent magnets.
POSCO International will lead management of the joint venture, while ReElement Technologies will provide core separation and refining technology.
The venture plans to produce neodymium-praseodymium oxide, dysprosium oxide and terbium oxide. It will first build annual production capacity of 3,000 tons before expanding to 6,000 tons.
Trial production is scheduled for the fourth quarter of 2027, with mass production targeted for 2028.
POSCO International said the project is part of its broader plan to build an integrated value chain from raw material sourcing to separation and refining, permanent magnets and electric vehicle motor cores.
"This joint venture is more than the establishment of a refining plant. It is the starting point for building a critical minerals value chain in the United States," Lee said.
-- Reported by Asia Today; translated by UPI
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This story was originally published May 22, 2026 at 7:49 PM.