POSCO International is making a full-scale entry into the US market, focused on the separation and purification of rare earth elements and the integrated production of permanent magnets. This move is anchored by a joint venture agreement signed with ReElement Technologies Corporation in Washington, D.C., on 21 May.

POSCO International and ReElement Technologies plan to jointly invest $200 million to establish a rare earth separation and refining plant in the US with an initial annual capacity of 6,000 tons. 

The venture would develop an integrated complex capable of producing permanent magnets in the future. POSCO International will hold majority ownership and lead management, while ReElement will contribute its core separation and refining technology.

The $200 million investment will be divided into two phases i) $100 million will be used for initial construction and startup ii) the other $100 million will be set aside for future expansion based on market demand.

The Boiler Maker Project: A milestone in Korea-US industrial cooperation

This joint venture, known as the ‘Boiler Maker Project’ following a memorandum of understanding signed in September 2025, represents a significant step toward diversifying the global rare earth supply chain, which is currently concentrated in a limited number of countries. The project holds strategic importance in Korea-US industrial collaboration.

Lee Kye-in, President of POSCO International, said, “This joint venture goes beyond the simple establishment of a refining plant and marks the starting point for building a core mineral value chain in the US that extends from raw materials to final materials,” adding, “The combination of both companies’ global supply chain capabilities and innovative separation and refining technologies will generate significant synergy.”

 

Mark Jensen, CEO of Re-Element, added, “By combining Re-Element’s separation and purification-focused platform with POSCO International’s global capabilities and industrial scale, we will create an integrated production system that resolves supply chain gaps in the market,” adding, “Both companies will jointly build a stable supply chain that supports national security, clean energy, and next-generation advanced technologies.” 

Importance of rare earth elements and market context

Rare earth elements are critical for advanced industries such as electric vehicle motors, robotics, and AI data centres. Heavy rare earth elements like dysprosium (Dy) and terbium (Tb) are essential for manufacturing high-performance permanent magnets. Given the scarcity of reserves and concentration of production, supply stability is vital for maintaining industrial competitiveness.

For this, the US government has already launched initiatives such as the Critical Minerals Supply Chain Council and Project Vault to establish domestic supply chains. Industry experts believe that companies that secure local production capabilities will gain a competitive advantage in the North American market, especially given current refining infrastructure challenges in the US.

Production roadmap and capacity expansion

The joint venture will produce neodymium (Nd) and praseodymium (Pr) oxides – key raw materials for permanent magnets – as well as heavy rare-earth oxides such as dysprosium and terbium. 

The initial phase targets an annual production capacity of 3,000 tons, with plans to expand to 6,000 tons per year in a second phase. 

Pilot production is scheduled for the fourth quarter of 2027, with formal mass production expected in 2028.

POSCO International’s investment goes beyond the separation and refining plant, aiming to establish an integrated value chain from raw material procurement to permanent magnet and electric vehicle drive motor core production. 

The company is actively pursuing investments in Southeast Asian mining operations and is exploring supply chain expansion through a joint raw materials task force with ReElement, including domestic and international mining resources and recycled materials.