ReElement and Posco Forge Strategic Partnership to Revolutionize Rare Earth Magnet Supply Chain

Partnership to Strengthen Rare Earth Magnet Supply
ReElement Technologies Corp., a leading rare earth and battery materials refiner, has entered into a strategic partnership with South Korea’s Posco International to transform the supply chain for rare earth magnets. The deal focuses on integrating ReElement’s advanced magnet recycling and rare earth ore refining processes into Posco’s expansive global manufacturing network. As a result of the partnership, ReElement will become the primary North American supplier of both heavy and light rare earth elements to Posco, bolstering Posco’s production of permanent magnets. This collaboration supports Posco’s extensive OEM contracts, valued at nearly $900 million, and will be pivotal as the demand for rare earth magnets intensifies, particularly in the electrification and green energy sectors.

Circular Supply Chain to Enhance Sustainability and Reduce Costs
A key component of the partnership is the creation of a circular supply chain, designed to address both sustainability and material supply challenges. ReElement will focus on recycling magnets and manufacturing scrap, processing these materials and reintroducing them into Posco’s production cycle. This closed-loop system will help mitigate the environmental impact of rare earth mining and reduce material costs, providing a more sustainable and resilient supply chain for high-value magnet materials. ReElement CEO Mark Jensen emphasized the importance of this collaboration in creating efficiencies and addressing the supply and sustainability challenges facing the industry, particularly in the electrified economy.

ReElement’s Innovative Refining Technology to Drive Efficiency
ReElement’s cutting-edge refining technology will play a significant role in this partnership. Unlike conventional hydrometallurgical methods, ReElement uses a patented process that maximizes surface area interface through columns and resins, enabling more efficient separation and purification of rare earth and critical battery materials. This method reduces the capital expenditure, physical footprint, environmental impact, and chemical usage typically associated with traditional refining processes. It also results in lower operational costs for mineral separation and purification. ReElement’s ability to use this technology to source high-quality feedstock from around the world will ensure a steady supply of rare earth elements to meet the increasing demands of the electrified economy, particularly in the production of magnets for electric vehicles, wind turbines, and other green technologies.

Strategic Focus on Electrification and Green Energy Demand
The collaboration comes at a time when demand for rare earth magnets is skyrocketing due to their critical role in clean energy technologies and electrification. The partnership between ReElement and Posco positions both companies to capitalize on this growing market, ensuring a diversified, reliable, and sustainable supply of rare earth materials. The joint efforts will help alleviate supply volatility, reduce costs, and meet the needs of North American and European OEM customers who require a stable supply chain for rare earth magnets.