ReElement Technologies has signed a long-term supply agreement with POSCO International America, in a move aimed at boosting U.S. refining capacity for rare earth elements and tightening cooperation with South Korea.
The deal, announced Monday, will see ReElement supply purified rare earth oxides such as neodymium, praseodymium, dysprosium and terbium, materials vital for magnets used in electric vehicles, wind turbines, defence systems and advanced electronics.
The companies said supply volumes will scale to more than 3,000 metric tons through 2030.
Rare earth elements are a small but critical group of minerals used in high-performance magnets and other technologies.
While China dominates the global refining market, governments and manufacturers in the U.S. and allied countries have been scrambling to build alternative supply chains.
ReElement, a subsidiary of American Resources Corp (NASDAQ:AREC), uses a chromatographic separation technology to extract and purify rare earths and other critical minerals.
Unlike traditional chemical-based refining, which produces significant waste, the company says its process is more modular, scalable and environmentally friendly.
Under the agreement, ReElement and POSCO will also establish a joint taskforce to secure feedstock, the raw materials containing rare earths, from sources such as mining concentrates, magnet manufacturing waste and end-of-life scrap magnets.
The partnership includes plans to co-develop refining capacity inside the U.S., positioning the two groups to expand processing outside of Asia.
POSCO, based in South Korea, is best known as one of the world’s largest steelmakers. In recent years it has expanded into advanced materials and clean energy technologies.
Its U.S. arm, POSCO International America, brings connections across the automotive and industrial sectors that could help ReElement scale its operations.
Mark Jensen, chief executive of ReElement, called the agreement “an important step forward,” saying the collaboration combines his company’s separation and purification technology with POSCO’s “unmatched industrial capabilities.”
He said the partnership would “strengthen the strategic bond between the United States of America and The Republic of Korea, while directly addressing one of the most pressing global challenges of our time: building resilient, transparent, and sustainable rare earth supply chains.”
The announcement builds on a memorandum of understanding the two companies signed last week in Seoul, underscoring their intent to align industrial capacity on both sides of the Pacific.
Financial details of the offtake agreement were not disclosed.