Rare earths: US plant to integrate production from raw material to magnet
ReElement Technologies and Posco have signed a memorandum of understanding to collaborate on the construction of such an integrated industrial complex for rare earths and permanent magnets. The end product of this value chain is one of the central components of certain permanently excited electric motors – primarily for electric vehicles. The plant is to be built in the USA and, according to the two companies, would be the first complex in the United States to integrate so many manufacturing phases “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,” the partners explain.
The US company ReElement Technologies specialises in the refining of rare earths and critical minerals, while Posco from Korea is primarily active in the market for steel, magnetic materials and innovative industrial solutions. For the planned project in the US, Posco International would be responsible for sourcing the rare earth intermediate materials and managing the permanent magnet business. ReElement is to provide the separation, refining and recycling technology. “The governments of Korea and the United States also discussed potential policy, financial, and regulatory support should the project move into full-scale implementation,” according to an accompanying statement.
With this initiative, both companies want to help strengthen the supply chain for rare earths, which is currently controlled in large parts by a few countries. Rare earths are indispensable for key industries such as electric vehicles, semiconductors and wind power.
Posco International has been active in the permanent magnet market for some time. In 2023, the South Korean company signed a contract to supply around 7,700 tonnes of permanent magnets to an unnamed North American car manufacturer. This quantity is to be delivered between 2026 and 2031 and will be sufficient for around 3.85 million electric vehicle motors. A European premium car manufacturer also plans to purchase around 800 tonnes of permanent magnets from Posco between 2025 and 2034. Building on the recently announced cooperation with ReElement, Posco is already planning to consolidate its position as a supplier of electric vehicle drive components. In future, Posco wants to offer “complete packages of all parts required for drive-motor-core rotors and stators to automakers domestically and internationally.”
Meanwhile, ReElement is refining a refining platform for critical minerals at its production facilities in Noblesville and Marion, Indiana. The company relies on chromatographic separation and purification methods – an approach based on chemical reactions.
“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.”
“Our collaboration with POSCO marks an important step forward,” added Mark Jensen, CEO of ReElement Technologies. “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. Together, we are proving that innovation and collaboration can deliver secure, long-term solutions for industries and nations that depend on these materials.”
This article was first published by Cora Werwitzke for electrive’s German edition.
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