The U.S. company plans to supply raw materials for Posco’s electric motor production and support automakers in the U.S., EU, Japan, and South Korea.
The U.S. uranium and rare earth producer Energy Fuels and South Korea’s Posco aim to reduce the dependency of rare earth magnet supply chains on China. In the future, Energy Fuels will supply rare earth oxides produced in the U.S. to Posco, strengthening its manufacturing of critical components for electric motors. These components will, in turn, supply automakers in the U.S., EU, Japan, and South Korea. The two companies have signed a corresponding Memorandum of Understanding.
Initial material samples have met POSCO’s specifications, according to the press release. Larger quantities, enough to power more than 30,000 electric vehicles, could be available later this year. The two parties are aiming for a long-term supply agreement.
Energy Fuels produces critical raw materials at its White Mesa Mill in the U.S. state of Utah. According to the company, its current annual production capacity is up to 1,000 tons of neodymium-praseodymium. Plans are in place to expand this capacity to 6,000 tons, including dysprosium and terbium, which are particularly in demand for rare earth magnets.
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Energy Fuels sources its raw materials primarily from monazite sand concentrates in various countries, including its own projects and cooperatively developed deposits. According to the company, its rare earth products could be produced at comparatively low costs. So far, production costs in China—where the rare earth industry has been built and subsidized for decades—are far below those in Western countries. The goal is to close a critical gap in the domestic market that is both competitive and shielded from geopolitical factors, said President and CEO Mark Chalmers.
Posco is also working on building new supply chains without involvement from the People’s Republic. As we reported earlier, the company has already formed a partnership with U.S. firm ReElement Technologies to supply Posco’s magnet production with rare earths.
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