Meteoric Resources has signed a non-binding memorandum of strategic partnership with POSCO International to advance the long-term development and commercial production of rare earth materials from the Caldeira Rare Earth Project in Brazil.
Under the terms outlined in the agreement, POSCO could receive up to 30% of Caldeira’s rare earth material for a period of up to seven years.
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The agreement forms part of the company’s efforts to establish a mine-to-magnet supply chain focused on magnetic rare earths (MREs) used in electric vehicle traction motors, robotics, data centres and defence applications.
Meteoric and POSCO will also consider long-term supply arrangements for Caldeira’s material, with the scale and terms subject to further negotiations, production availability and internal approvals.
The memorandum contemplates support from POSCO for Meteoric’s financing activities including possible participation in Meteoric’s equity, as well as assistance in seeking funding from Korean Export Credit Agencies and other financial institutions.
According to Meteoric, POSCO’s involvement could provide access to entities such as the Export-Import Bank of Korea and Korea Trade Insurance.
Both companies also intend to share technology and industry practices, aiming to bolster Brazil’s downstream rare earth sector and value chain.
Metallurgical testing by Meteoric indicates that Caldeira’s rare earth carbonate can be processed by POSCO without extra refining steps.
This could streamline the supply process for the critical minerals.
The supply terms would see pricing initially referenced to the Asian Metal Index, with final offtake pricing details to be set through further commercial negotiations.
The memorandum remains subject to due diligence, internal approvals and the completion of definitive agreements.
Meteoric managing director Stuart Gale said: “This memorandum represents a significant endorsement of Caldeira’s scale, quality and strategic importance, and provides a strong platform to advance long-term offtake, financing support and downstream supply chain integration with one of Korea’s most important industrial groups.
“Both POSCO and Meteoric teams have been working cohesively over many months to establish this partnership, which will provide a strong basis for the development of Brazil’s rare earth industry and ensure a secure and resilient supply chain for the Republic of Korea.”
In January this year, Meteoric secured a non-binding, conditional letter of support for financing of up to $50m (A$74.71m) from Export Finance Australia to back the Caldeira Rare Earth Project.
