US-based strategic minerals specialist Energy Fuels and South Korean automotive giant POSCO International have signed a Memorandum of Understanding ( MOU ) to establish a rare earth ( REE ) supply chain outside of China.
Independence in the rare earth supply chain
China currently dominates the global market for processing and refining rare earths, which are critical to the technology and mobility industries. Under this agreement, Energy Fuels plans to supply refined neodymium praseodymium ( NdPr ) oxides at its White Mesa plant in Utah, while POSCO International will handle final processing and production of REE magnets for automakers in the United States, Europe, South Korea, and Japan.
The company has sent initial samples of NdPr oxides to POSCO, which meet the required quality standards. In the coming months, the company will send a larger sample for validation. If confirmed viable, mass production of these magnets is expected to supply more than 30,000 electric vehicles before the end of the year.
Furthermore, the agreement provides for the possibility of long-term supply , ensuring the availability of critical materials for the automotive industry without relying on the Chinese market. According to Mark Chalmers, CEO of Energy Fuels, this is a fundamental step toward strengthening the security of rare earth supply in the West.
To ensure the supply of raw materials, Energy Fuels has diversified its acquisition portfolio, securing high-grade monazite concentrates from various regions around the world. Key projects include:
- Toliara Project in Madagascar (100% acquisition)
- Donald Project in Australia (right to a 49% stake)
- Bahia Project in Brazil (100% acquisition)
- Business relationship with Chemours in the United States
The agreement between Energy Fuels and POSCO International represents a major step forward for electric vehicle manufacturing and the independence of manufacturers from the restrictions of the Chinese market. If a final agreement is reached this year, the first vehicles powered by rare earth magnets produced in the United States could hit the market by 2025.
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Source and photo: Energy Fuels
