The joint venture targets 3,000 metric tons of annual rare earth separation capacity by 2028 to secure domestic supply chains.
ReElement Technologies and POSCO (PKX) formed a $200 million joint venture to build the first US-based integrated rare earth separation and magnet production facility. The project aims to reduce reliance on China, which controls over 90% of global permanent magnet production, by establishing a secure supply chain for electric vehicles, defense, and renewable energy sectors.
The JV plans to reach an annual separation capacity of 3,000 metric tons by 2028, doubling that figure by 2030. It will leverage POSCO’s industrial expertise and ReElement’s proprietary purification technology to create a closed-loop system using primary and recycled feedstock. The initiative aligns with US efforts to bolster national security and clean energy infrastructure.
Site selection is underway, with a modular and scalable design intended to meet rising demand from North American automotive and advanced technology industries. The partnership strengthens an existing alliance between the two companies.