Brazilian rare earth project expected to support EV and next-generation mobility industries
Move aligns with POSCO Group's strategy to diversify critical mineral supply chains
As global competition intensifies to secure critical minerals for electric vehicles and advanced technologies, POSCO Group is expanding its rare earth supply network through a strategic partnership in Brazil. The move is aimed at strengthening an integrated value chain spanning raw material procurement, refining, and permanent magnet production while reducing supply chain risks.
POSCO International announced on July 28 (local time) that it signed a memorandum of understanding (MOU) with Brazilian rare earth developer Meteoric Resources in São Paulo to establish a stable supply of rare earth feedstock and deepen cooperation on the development of the global rare earth supply chain.
The signing ceremony was attended by Kim Jung-kwan, South Korea's Minister of Trade, Industry and Energy; Chang In-hwa, Chairman of POSCO Group; Lee Kye-in, President and CEO of POSCO International; and Stuart Gale, CEO of Meteoric Resources, highlighting the strategic importance of critical mineral cooperation between South Korea and Brazil.
Under the agreement, the two companies will negotiate key commercial terms for a long-term rare earth supply contract, explore an equity investment linked to the supply agreement, and work toward a definitive agreement covering the overall project.
As part of the collaboration, Meteoric Resources will supply rare earth mixed concentrate produced from its Caldeira Project in Brazil's Minas Gerais state. POSCO International plans to process the material through its own rare earth separation and refining facilities to produce rare earth oxides for domestic and overseas permanent magnet manufacturers.
The partnership is expected to reinforce POSCO Group's integrated rare earth value chain, covering everything from raw material procurement and refining to permanent magnet production.
Rare earth elements are essential materials used in electric vehicle traction motors, wind turbines, industrial robotics, and a wide range of advanced electronic devices. As countries seek to reduce dependence on concentrated sources of critical minerals, securing diversified supply chains has become a strategic priority for manufacturers worldwide.
"By combining POSCO Group's integrated rare earth value chain with Brazil's world-class rare earth resources, we aim to contribute to stabilizing the domestic supply chain for critical materials essential to future mobility industries while creating new growth opportunities for the Group," said Chang In-hwa, Chairman of POSCO Group.
POSCO Group has already signed supply agreements for rare earth permanent magnets used in electric vehicle drive motors with major automakers in North America and Europe. The company plans to link Brazilian raw materials with its global automotive customer network, enhancing competitiveness across the entire supply chain from mining to finished products.
The latest agreement also supports POSCO Group's broader "Triple-Core" growth strategy, which focuses on industrial resources such as steel, strategic resources including lithium, rare earths and rare gases, and energy resources such as liquefied natural gas (LNG) and renewable energy.
The Group has been steadily expanding its global resource portfolio through investments in Argentina's Hombre Muerto Norte lithium project and Australia's Wodgina and Mount Marion lithium mines. Earlier this month, it also signed an MOU with Mongolia's Chinggis Khaan National Wealth Fund to strengthen cooperation in critical minerals.
Industry analysts say the partnership reflects the growing importance of securing stable supplies of strategic minerals as demand for electric vehicles and clean energy technologies continues to accelerate. By expanding its upstream resource base while strengthening downstream processing capabilities, POSCO Group is positioning itself to play a larger role in the global critical minerals supply chain.
