POSCO International is making a significant entry into the rare earth separation and permanent magnet production business in the United States.
On May 21, POSCO International signed an agreement in Washington, D.C., with U.S. rare earth separation company ReElement to establish a joint venture for rare earth separation production in the U.S.
This agreement marks the official launch of the "Boilermaker Project," which has been in development since September of last year. POSCO International previously signed a memorandum of understanding (MOU) to integrate rare earth and permanent magnet production facilities in the U.S. as part of efforts to diversify the global rare earth supply chain, which is heavily reliant on specific countries, through U.S.-South Korea industrial cooperation.
The two companies plan to jointly invest a total of $200 million (approximately 270 billion won) to establish a rare earth separation plant in the U.S. with an annual capacity of 6,000 tons. They also aim to create an integrated facility for consistent production of permanent magnets.
As the majority stakeholder, POSCO International will lead the management of the joint venture, while ReElement will provide core separation technology. The initial investment of $100 million will be allocated for the construction of the factory and equipment, with the remaining $100 million reserved for expansion based on market demand.
The joint venture plans to produce neodymium (Nd) and other heavy rare earth oxides, essential materials for advanced industries such as electric vehicle motors and AI data centers. The first phase will establish a production capacity of 3,000 tons annually, followed by a second phase to increase capacity to 6,000 tons.
Pilot production is expected to begin in the fourth quarter of 2027, with full-scale production targeted for 2028.
Lee Gye-in, President of POSCO International, stated, "This joint venture is not just about establishing a refining plant; it marks the beginning of building a value chain for critical minerals in the U.S., from raw materials to final products. The combination of our global supply chain capabilities and innovative separation technology will create significant synergies."
* This article has been translated by AI.
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