ReElement Technologies Signs MOU with POSCO International to Bolster Rare Earth Supply Chain and Build Integrated U.S. Production Complex
ReElement Technologies, a portfolio company of American Resources Corporation (NASDAQ:AREC), has signed a significant MOU with POSCO International to establish the first fully integrated rare earth and permanent-magnet production complex in the United States.
The partnership combines ReElement's advanced separation and refining technology with POSCO's expertise in sourcing rare-earth materials and permanent-magnet production. POSCO International brings substantial industry experience, having secured contracts to supply 7,700 tons of permanent magnets to a North American automaker (2026-2031) and 800 tons to a European automaker (2025-2034).
This strategic collaboration aims to strengthen the rare-earth supply chain, reduce dependency on limited suppliers, and create a sustainable ecosystem for critical materials essential for electric vehicles, semiconductors, and renewable energy industries.
- First fully integrated U.S. rare-earth and permanent-magnet production complex
- Strategic partnership combines ReElement's refining technology with POSCO's industrial capabilities
- POSCO secured major contracts with automotive manufacturers worth 8,500 tons of permanent magnets
- Potential government support from both U.S. and Korea for implementation
- Vertical integration from raw materials to recycling in one facility
- Project still in MOU phase, pending full-scale implementation
- Significant capital investment and infrastructure requirements likely needed
- Complex regulatory and policy requirements across two countries
Insights
ReElement's POSCO partnership creates first vertically integrated US rare earth facility, reducing geopolitical supply risks for EV and tech manufacturing.
This MOU between ReElement and POSCO International represents a significant advancement in reshaping the rare earth element (REE) supply chain outside of current concentrated sources. The planned integrated complex addresses the most vulnerable point in Western manufacturing supply chains by combining ReElement's separation technology with POSCO's manufacturing expertise.
The facility's vertical integration model is particularly noteworthy - handling everything from raw material processing to magnet manufacturing and recycling within a single complex. This approach potentially reduces logistics costs, minimizes material losses, and creates substantial operational efficiencies compared to the fragmented supply chains currently dominating the industry.
POSCO's existing contracts with major automakers provide immediate market validation. Their agreements to supply 7,700 tons of permanent magnets to a North American automaker and 800 tons to a European manufacturer represent approximately 4.25 million EV motors - significant market share in the rapidly growing EV sector.
From a geopolitical perspective, this US-South Korea partnership aligns perfectly with both nations' strategic interests in reducing dependence on concentrated REE supply chains. The attendance of high-ranking government officials suggests potential for regulatory streamlining and possible financial incentives, which could accelerate development timelines and reduce capital requirements.
ReElement's chromatographic separation technology provides a critical competitive advantage in this partnership. Traditional rare earth separation relies on environmentally problematic solvent extraction processes requiring thousands of mixing and settling steps. Their alternative approach offers both environmental benefits and potentially lower production costs - crucial factors for establishing economically viable domestic processing.
FISHERS, IN / ACCESS Newswire / September 18, 2025 / 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."
About POSCO International Corporation
POSCO International, a core member of the POSCO Group, continues to solidify its position as a leading trading and investment company with a diverse business portfolio spanning steel, energy, and agribusiness. Leveraging an extensive global network, the company is actively engaged in steel trading, the development and operation of the Myanmar Gas Field, as well as sourcing key resources for its overseas agribusiness operations.
In line with its commitment to sustainable growth, POSCO International is also exploring future growth engines such as renewable energy and eco-friendly mobility components. By prioritizing innovation and sustainability, the company aims to stay ahead in a rapidly changing global business landscape.
Supported by a stable business foundation and robust global capabilities, POSCO International is well-positioned to achieve sustainable growth and create long-term value. For more information, please visit www.poscointl.com.
About ReElement Technologies Corporation
ReElement Technologies Corporation, a portfolio company of American Resources Corporation (NASDAQ:AREC), is a leading provider of high-performance refining capacity for rare earth and critical battery elements. Its multi-mineral, multi-feedstock platform technology focuses on the refining of recycled material from rare earth permanent magnets and lithium-ion batteries, concentrated ores and brines, as well as coal-based waste streams and byproducts to create a cost effective and environmentally-safe, circular supply chain. ReElement has developed its innovative and scalable "Powered by ReElement" process which collaboratively utilizes its exclusively licensed intellectual property within its partners' material processing flow sheets to more efficiently support the global supply chain's growing demand for magnet and battery-grade products. For more information visit reelementtech.com or connect with the Company on Facebook, Twitter, and LinkedIn.
About American Resources Corporation (NASDAQ:AREC)
American Resources Corporation is a leader in the critical mineral supply chain, developing innovative solutions both upstream and downstream of the refining process. The company and its affiliates focus on the extraction and processing of metallurgical carbon and iron ore, essential ingredients in steelmaking, as well as critical and rare earth minerals for the electrification market and recycled metals.
Leveraging its affiliation and former parent status of ReElement Technologies Corporation, a leading provider of high-performance refining capacity for rare earth and critical battery elements, American Resources is investing in and developing efficient upstream and downstream critical mineral operations. These operations include mining interests in conventional and unconventional sources, recycling, and manufacturing.
American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.
Special Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company's actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resources Corporation's control. The words "believes", "may", "will", "should", "would", "could", "continue", "seeks", "anticipates", "plans", "expects", "intends", "estimates", or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.
Investor Contact:
JTC Team, LLC
Jenene Thomas
(908) 824 - 0775
arec@jtcir.com
Media Inquiries:
Marjorie Weisskohl
703-587-1532
mweisskohl@allseasonspr.com
Company Contact:
Mark LaVerghetta
317-855-9926 ext. 0
investor@americanresourcescorp.com
SOURCE: American Resources Corporation
View the original press release on ACCESS Newswire
FAQ
What is the significance of ReElement Technologies' MOU with POSCO International?
How many tons of permanent magnets will POSCO supply to automotive manufacturers?
What role will ReElement Technologies play in the POSCO partnership?
How will the ReElement-POSCO partnership impact the U.S. rare earth supply chain?
What industries will benefit from the ReElement-POSCO rare earth production complex?
