U.S.-based ReElement Technologies and South Korea’s Posco said they plan to build a joint facility in the United States that would process rare earth raw materials and produce permanent magnets under one roof, a move the partners describe as a new level of vertical integration.
The companies signed a memorandum of understanding to collaborate on the project, which they said would be the first complex in the United States to integrate the full value chain “from securing rare-earth raw materials and conducting separation and refining, to manufacturing permanent magnets and recycling manufacturing scrap and end-of-life magnets—all within one facility.”
ReElement specializes in the refining of rare earths and critical minerals, while Posco International oversees magnetic materials and industrial solutions. For the U.S. project, Posco would manage sourcing of intermediate materials and permanent magnet production, while ReElement would provide separation, refining and recycling technology.
“The agreement will help strengthen resource security and diversify supply chains in both Korea and the United States,” said Kye-In Lee, president and CEO of Posco International. “It provides an opportunity to reduce the risks of supply-chain concentration and to establish a stable system for supplying critical materials to domestic and global automakers.”
Mark Jensen, CEO of ReElement Technologies, said the initiative combines innovation with geopolitical strategy. “By combining our patented refining technology with POSCO’s industrial capabilities, we are scaling rare earth processing and strengthening the U.S.-Korea partnership to build resilient and sustainable supply chains for critical materials,” he said. “Together, we are proving that innovation and collaboration can deliver secure, long-term solutions for industries and nations that depend on these materials.”
The move comes as demand for permanent magnets grows, particularly for electric vehicle motors. Posco has existing supply contracts, including an agreement signed in 2023 to deliver 7,700 tonnes of permanent magnets to a North American automaker between 2026 and 2031, and a separate 800-tonne deal with a European carmaker through 2034.