POSCO and ReElement Launch Strategic U.S. Rare Earth Venture

POSCO Holdings, Inc.’s PKX subsidiary, POSCO International, has signed an agreement with ReElement Technologies Corporation to establish a joint venture for rare earth separation and purification production in the United States. The companies plan to jointly invest $200 million to build a U.S.-based rare earth processing plant with an annual production capacity of 6,000 tons and later develop an integrated permanent magnet manufacturing complex. POSCO will lead the joint venture as the majority shareholder, while ReElement will contribute its proprietary separation and purification technologies. The project will initially establish a production system with an annual capacity of 3,000 tons before expanding to 6,000 tons in the second phase. Pilot production is targeted for the fourth quarter of 2027, with full-scale commercial production expected in 2028. The facility will produce key rare earth materials used in electric vehicles (EVs), robotics and AI data centers, including neodymium (Nd), praseodymium (Pr), dysprosium (Dy) and terbium (Tb) oxides. The companies also plan to expand into permanent magnet manufacturing using these materials. The investment is expected to strengthen U.S. critical minerals supply chains and support POSCO Group’s broader strategy to build an integrated value chain spanning raw material sourcing, rare earth processing, permanent magnet production and EV traction motor core manufacturing. Per ReElement, the partnership will combine its advanced separation and purification technology with POSCO International’s global network and industrial expertise to create an integrated production system aimed at addressing critical supply chain gaps. Shares of PKX have gained 56.5% in the past year against the industry’s 1.8% decline. Image Source: Zacks Investment ResearchPKX Zacks Rank & Key PicksPKX currently carries a Zacks Rank #4 (Sell).Some better-ranked stocks in the Conglomerates space are ITT Inc. ITT, Mitsui & Co., Ltd. MITSY and Griffon Corporation GFF. ITT, MITSY and GFF carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.The Zacks Consensus Estimate for ITT’s current-year earnings is pegged at $7.91 per share, indicating a 17.7% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, with the average earnings surprise of 5.8%.The Zacks Consensus Estimate for MITSY’s current-year earnings is pegged at $47.08 per share, indicating a 21.84% year-over-year decrease. Shares of MITSY have gained 63.4% over the past year.The Zacks Consensus Estimate for GFF’s current fiscal-year earnings is pegged at $5.17 per share. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average earnings surprise of 3.3%.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks