American Resources Corporation's (NASDAQ:AREC) portfolio company, ReElement Technologies ("ReElement"), a leading U.S. innovator in rare earth element (REE) and critical mineral refining, has signed a memorandum of understanding (MOU) with POSCO International Corporation ("POSCO International" or "POSCO"), a global leader in steel, magnetic materials, and advanced industrial solutions. The agreement aims to strengthen the rare-earth supply chain and explore cooperation on establishing an integrated rare-earth and permanent-magnet production complex in the United States.
The signing ceremony, held at the POSCO Center in Seoul, was attended by Kye-In Lee, President & CEO of POSCO International; Mark Jensen, CEO of ReElement Technologies; Na Sung-hwa, Director General for Industrial Supply Chain Policy; and Joseph Yun, U.S. Deputy Ambassador to Korea.
The planned Integrated Rare Earth and Permanent Magnet Production Complex would be the first U.S. facility to achieve full vertical integration of rare-earth and permanent-magnet production within an integrated industrial complex. It is designed to manage every stage-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.
Under the partnership, POSCO International will oversee sourcing of rare-earth intermediate materials and the permanent-magnet business, while ReElement will provide advanced 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.
Currently, the global rare-earth supply chain relies heavily on a limited number of countries. Because rare-earth elements are indispensable for industries such as electric vehicles, semiconductors, and wind power, this concentration poses geopolitical risks and supply-chain uncertainties that threaten global industrial stability.
This collaboration seeks to diversify and de-risk supply chains, mitigating such risks and creating a foundation for flexible responses to changes in demand. By securing a more stable supply of rare-earth raw materials and strengthening permanent-magnet production capabilities, the initiative will enable long-term, stable, and flexible delivery of critical materials to automakers worldwide.
POSCO International is already expanding its presence in the global permanent-magnet market. In 2023, the company signed a contract with a major North American automaker to supply approximately 7,700 tons of permanent magnets-enough for about 3.85 million electric-vehicle motors-between 2026 and 2031. It also concluded an agreement with a premium European automaker to supply roughly 800 tons-sufficient for about 400,000 electric-vehicle motors-from 2025 through 2034.
ReElement is rapidly advancing its economically viable and eco-friendly critical mineral refining platform in Indiana at its Noblesville Commercial Qualification Facility and its Marion Supersite. Leveraging advanced chromatographic separation and purification methods, ReElement is addressing the most complex segment of the supply chain while building strategic alliances to strengthen global critical mineral supply chains.
Building on this cooperation, POSCO International plans to broaden its value chain to solidify its position as a key supplier of electric-vehicle drivetrain components. Future plans include offering complete packages of all parts required for drive-motor-core rotors and stators to automakers domestically and internationally.
"The agreement will help strengthen resource security and diversify supply chains in both Korea and the United States," said Kye-In Lee, President & 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."
Source: www.theglobeandmail.com
Aleksei Andrievskii is the founder of the ANDRIEVSKII SEA WEALTH family office in Cyprus, a member of the advisory board at Bendura Bank AG, Liechtenstein