Energy Fuels and Posco Forge Rare Earth Partnership for EV Supply Chain

Energy Fuels

Deal Could Power Over 30,000 EVs and Reduce Dependence on Chinese Rare Earths

U.S.-Korea Pact Targets EV Magnet Materials

U.S. rare earths producer Energy Fuels has entered a strategic agreement with South Korea’s Posco International to supply neodymium-praseodymium (NdPr) oxide. The material is essential for permanent magnets used in electric vehicle (EV) and hybrid electric vehicle (HEV) drivetrains.

Energy Fuels recently shipped NdPr samples to Posco, which will test them for use in magnet alloy and metal manufacturing. These magnets will be integrated into traction motor cores supplied to automakers across the U.S., Europe, South Korea, and Japan.

Pending successful validation, Energy Fuels and Posco intend to sign a commercial supply agreement. This deal would cover enough NdPr to support magnets for over 30,000 EVs annually, potentially expanding into a longer-term production partnership.

Rare Earth Diversification Strategy Gains Momentum

The collaboration marks a step forward in diversifying the global rare earth supply chain, which remains heavily dominated by China. According to the U.S. Geological Survey, China produced 69%—around 270,000 metric tonnes—of global rare earth ore in 2024.

Energy Fuels aims to challenge that dominance by expanding its rare earth production capacity. The company operates its White Mesa Mill in Utah, producing oxides from monazite concentrates sourced as a by-product of heavy mineral sands.

The company currently has a capacity of 1,000 t/yr for NdPr oxide and plans to scale this up to between 4,000–6,000 t/yr. Future expansions will also include additional rare earth elements such as dysprosium and terbium, which are crucial for high-temperature magnet performance in EVs.