Energy Fuels Inc., a Lakewood-based producer of uranium and rare earth elements, announced a strategic Memorandum of Understanding (MOU) with South Korea-based POSCO International Corp. This collaboration aims to establish a non-China rare earth element (REE) supply chain for electric vehicle (EV) and hybrid EV drivetrains, targeting automakers in the U.S., E.U., Japan and South Korea.
POSCO is recognized as a global leader in producing traction motor cores, essential components for EV drivetrains. The partnership seeks to link Energy Fuels’ emerging U.S. REE oxide production with POSCO’s established position in the industry. According to Mark Chalmers, president and CEO of Energy Fuels, “Today’s agreement between Energy Fuels and POSCO International brings the U.S. and our allies in Europe, South Korea and Japan one step closer to seeing vehicles powered by American-made rare earth oxides with no ties to China.”
Initial qualification samples of Energy Fuels’ neodymium-praseodymium (NdPr) oxide, produced at its White Mesa Mill in Utah, have met POSCO’s specifications. Under the MOU, Energy Fuels will supply a larger scale sample of NdPr oxide, which will be processed by POSCO into high-performance permanent REE magnets for use in its traction motor cores. The successful validation of the initial samples could allow for additional mass production supply volumes of NdPr oxide later this year, potentially powering over 30,000 EVs.
Energy Fuels aims to create a traceable and competitively priced rare earth supply chain for allied magnet-makers and automotive partners. Chalmers noted, “We are proud to work with POSCO, as they have deep expertise, a strong network, and an existing customer base in permanent magnets, traction drive units and other motor systems.” If definitive agreements are completed this year, Energy Fuels’ rare earths could power U.S. vehicles in 2025.
The MOU outlines the binding commitments for Energy Fuels to ship NdPr samples and for POSCO to provide feedback. The parties plan to discuss long-term supply agreements for U.S.-produced REE oxides once initial validation is complete.
