Overview
- POSCO International and Australia’s Meteoric Resources signed a non‑binding memorandum of understanding that was announced after a July 28 signing in Brazil with company leaders and South Korea’s industry minister present.
- The MOU opens talks on a long‑term purchase contract, contemplates POSCO taking an equity stake in Meteoric, and sets terms for a definitive project agreement while remaining subject to due diligence and internal approvals.
- Under the plan Meteoric would supply intermediate rare‑earth material from the Caldeira project in Minas Gerais and POSCO would process that material into rare‑earth oxides for permanent‑magnet production for EV motors.
- Meteoric said POSCO could receive as much as 30% of Caldeira’s material for up to seven years and the two firms will discuss financing support and pricing benchmarks, but all volumes and terms depend on further negotiation and approvals.
- If completed, the tie‑up would link Brazilian raw material to POSCO’s existing magnet contracts with automakers, broaden Korea’s supplier base for EVs, and could prompt follow‑on financing and regulatory steps needed to move Caldeira toward production.