A Major Shift in America’s Supply Chain: ReElement and POSCO Launch First-of-Its-Kind U.S. Rare Earth Magnet Venture

The United States just took a major step toward reshoring one of the most strategically important supply chains in the world. ReElement Technologies and South Korea’s POSCO International have signed a landmark joint venture to build the nation’s first fully integrated rare earth separation, refining, and permanent magnet production complex, a move that could reshape everything from electric vehicles to defense systems. 

This isn’t a small pilot project. The two companies are committing $200 million to develop a U.S.-based facility capable of processing 6,000 metric tons of rare earth materials annually, enough to meaningfully reduce America’s dependence on China, which currently dominates the global market. China controls 60% of mined rare earth production, more than 90% of refining capacity, and nearly 95% of permanent magnet manufacturing. That level of concentration has long been a national security concern, especially when export controls or geopolitical tensions disrupt supply. 

The new venture aims to break that bottleneck by creating what ReElement CEO Mark Jensen calls a “secure, non-China supply chain that supports national security, clean energy, and the next generation of advanced technologies.” POSCO will serve as the majority shareholder and operational lead, while ReElement provides the core separation and purification technology, a chromatographic process capable of producing high-purity rare earth oxides across both light and heavy elements. 

What makes this project especially significant is its end-to-end design. The companies plan to connect raw materials sourced from Southeast Asia to a U.S. refining hub and then to a permanent magnet manufacturing complex, all within one integrated system. That means the U.S. won’t just refine rare earths; it will produce the finished magnets used in EV motors, robotics, wind turbines, AI data centers, and advanced defense systems. These magnets are essential for high-performance applications, especially those requiring heavy rare earths like dysprosium and terbium. 

The development will roll out in phases. Initial capacity will reach 3,000 tons per year, scaling to 6,000 tons in the second phase. Pilot production is targeted for late 2027, with full commercial output expected in 2028. POSCO executives describe the project as the “starting point for establishing a critical minerals value chain in the United States that connects raw materials to final materials.” 

This joint venture also builds on an earlier offtake agreement between the two companies, part of a broader U.S.–South Korea industrial cooperation effort to diversify global supply chains. The initiative, known as the “Boiler Maker Project,” was first outlined in a memorandum of understanding last year and is now moving into full implementation. 

The timing couldn’t be more important. Rare earth magnets are the backbone of the clean-energy and high-tech economy, yet the U.S. has lacked domestic refining and magnet-making capacity for decades. When China has tightened exports in the past, American manufacturers have faced delays, higher costs, and production slowdowns. This new venture is designed to eliminate that vulnerability.

In the words of POSCO International CEO Lee Kye-in, “This joint venture goes beyond merely building a refining plant; it is the starting point for building a critical minerals value chain in the United States.” 

If successful, the ReElement–POSCO partnership won’t just strengthen America’s industrial base, it will help secure the technologies that will define the next century.