ReElement Technologies, POSCO (PKX) Form $200M JV for US Rare Earth, Magnet Production

Re Element Technologies, POSCO (PKX) Form $200M JV for US Rare Earth, Magnet Production Maham Fatima Tue, June 30, 2026 at 6:46 PM GMT+7 2 min read 005490.KS 047050.KS PKX POSCO Holdings Inc. (NYSE:PKX) is one of the undervalued stocks with high upside potential. On May 21, Re Element Technologies and Posco International formed a $200 million JV to develop the first integrated rare earth separation and permanent magnet production facility in the US. The initiative aims to establish a secure, non-China supply chain for critical industries, including electric vehicles, defense, and renewable energy, with plans to reach an annual separation capacity of 3,000 metric tons by 2028 and double that by 2030.

The partnership uses Posco's industrial market expertise and ReElement's proprietary purification technology to create a "closed-loop" system. By using both primary and recycled feedstock, the companies seek to reduce US dependence on Chinese refining (which currently controls over 90% of global permanent magnet production) and address critical gaps in the domestic supply of rare earth materials.

This deal strengthens an existing alliance between the two firms and aligns with broader US efforts to support national security and clean energy infrastructure. As the companies evaluate potential US site locations, the project is designed to be modular and scalable, providing a sustainable model to meet the surging demands of the North American automotive and advanced technology sectors.