SEOUL, July 29 (Yonhap) -- POSCO International, the trading and energy arm of POSCO Group, said Wednesday it has signed a preliminary agreement with an Australian mining company to strengthen the rare earth supply chain.

The company signed a memorandum of understanding (MOU) with Meteoric Resources to secure a stable supply of rare earth raw materials and develop an integrated supply chain, POSCO International said in a press release.

Under the MOU, POSCO International will discuss commercial terms for purchasing rare earth materials from a Brazilian mine operated by Meteoric Resources, as well as the possibility of acquiring an equity stake in the Australian company, the release said.

"By combining POSCO Group's integrated rare earth value chain, spanning raw material sourcing through permanent magnet production, with Brazil's world-second-largest rare earth reserves, we will strengthen the group's future growth engines while helping stabilize the domestic supply chain for key materials critical to the future mobility industry," POSCO Group Chairman Chang In-hwa said in the release.

POSCO Group has already accelerated its expansion in the global market by signing a series of supply agreements with major automakers in North America and Europe to provide rare earth permanent magnets used in electric vehicle (EV) drive motors.

kyongae.choi@yna.co.kr

(END)

  • Nam Joo-hyuk to star in new Disney+ crime thriller 'Code'
  • BTS' 'Arirang' returns to top 10 on Billboard 200
  • BTS' 'Butter' tops 1.1 bln views on YouTube
  • New U.S. Ambassador Steel to arrive in S. Korea this week amid pileup of bilateral issues

  • (LEAD) Seoul mayor sentenced to 10 mln-won fine for accepting illegal political funds

  • (LEAD) S. Korea, U.S. open shipbuilding partnership center to advance MASGA initiative

  • Nam Joo-hyuk to star in new Disney+ crime thriller 'Code'
  • (3rd LD) SK Group chairman ordered to pay 944 bln won in asset division to ex-wife
  • Trump threatens 'substantial' Section 301 tariffs on EU after Google fine

  • Lee says emergence of AI era offers S. Korea new opportunity

  • (LEAD) Tremor of Japan earthquake felt in parts of S. Korea: authorities

  • S. Korea formally completes development of homegrown KF-21 fighter jet
  • KRX activates sell-side sidecar for KOSPI on sharp decline
  • (2nd LD) Seoul shares crash over 10 pct on heavy tech selloff amid AI skepticism
  • Bourse operator issues circuit breaker for KOSPI on sharp fall