The Korean and U.S. governments on the 29th reached agreement on matters related to the $350 billion fund for investment in the United States, the core sticking point in the tariff talks, securing a deal on the tariffs. Tariffs on cars and parts (25%) were cut to 15%, the same as Japan and the European Union (EU), but there was no discussion on steel tariffs, which are subject to a 50% tariff, leaving POSCO, Korea's top steelmaker, unable to celebrate. Still, it is encouraging that the United States, seeking to strengthen the rare earth supply chain in case China moves to control rare earths, is courting POSCO INTERNATIONAL.
According to the White House "Fact Sheet" titled "President Donald Trump secures additional $1 billion transaction during Korea state visit," POSCO INTERNATIONAL will establish a vertically integrated complex covering rare earth separation, refining, and magnet production with ReElement Technologies in the United States.
On the afternoon of the 29th, when the Korea-U.S. summit was held, rare earths drew attention alongside the defense industry at the Business Roundtable (BRT) chaired by U.S. Commerce Secretary Howard Lutnick at the "2025 APEC CEO Summit." The event was attended by Minister Kim Jung-kwan of the Ministry of Trade, Industry and Energy; Samsung Electronics Chairman Lee Jae-yong; SK Group Chairman Chey Tae-won; Hyundai Motor Group Chairman Chung Eui-sun; LG Group Chairman Koo Kwang-mo; Lotte Group Chairman Shin Dong-bin; POSCO Group Chairman Chang In-hwa; Hanwha Group Vice Chairman Kim Dong-Kwan; HD Hyundai Chairman Chung Ki-sun; Doosan Enerbility Chairman Park Gee-won; and Korea Zinc Chairman Choi Yoon-beom.
It is known that Chairman Chang was invited as the United States showed interest in cooperation on rare earths. POSCO subsidiary POSCO INTERNATIONAL joined hands with ReElement in September to establish an integrated rare earth and permanent magnet production complex in the United States. POSCO INTERNATIONAL will handle the sourcing of rare earth intermediates and the production of permanent magnets, while ReElement will provide rare earth separation and refining and permanent magnet recycling technologies, as the two build an integrated rare earth and permanent magnet production complex in the United States. ReElement is a subsidiary of the U.S. infrastructure supply company "American Resources" and has supplied rare earths to POSCO INTERNATIONAL.
POSCO INTERNATIONAL is building a cooperation system that links the entire process in a single chain, from rare earth mining to permanent magnet productization to end-of-life recycling, with 25 companies in North America, Australia, and Asia.
POSCO INTERNATIONAL's U.S. subsidiary signed a contract in March to supply permanent magnets worth 900 billion won to a North American global finished car company. POSCO INTERNATIONAL will supply permanent magnets from 2026 to 2031, and these magnets will be installed in drive motors for new mid- to large-sized electric vehicles of the North American global finished car company. POSCO INTERNATIONAL's German subsidiary also signed a contract in March to supply rare earth permanent magnets worth 260 billion won from 2025 to 2034 to a European premium finished car brand.
These permanent magnets will use raw materials sourced from the United States, Australia, and Vietnam, not Chinese rare earths. Production of the permanent magnets will be handled by Seonglim Advanced Industry, a rare earth permanent magnet manufacturer.