Meteoric Resources and POSCO International sign strategic partnership MOU for Brazil rare earths project

By: Shree Mishra Source: Mining Technology

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.

Key Terms of the Agreement

• POSCO could receive up to 30% of Caldeira's rare earth material for a period of up to seven years.
• The agreement supports POSCO's goal of establishing a mine-to-magnet supply chain focused on magnetic rare earths (MREs).
• MREs are used in electric vehicle traction motors, robotics, data centres, and defence applications.

Supply and Pricing Arrangements

• Meteoric and POSCO will consider long-term supply arrangements for Caldeira's material.
• Scale and terms remain subject to further negotiations, production availability, and internal approvals.
• Pricing will initially reference the Asian Metal Index, with final offtake pricing to be determined through further commercial negotiations.

Financing and Technology Collaboration

• POSCO may support Meteoric's financing activities, including possible participation in Meteoric's equity.
• POSCO will assist in seeking funding from Korean Export Credit Agencies and other financial institutions.
• Access to entities such as the Export-Import Bank of Korea and Korea Trade Insurance is anticipated.
• Both companies intend to share technology and industry practices to strengthen Brazil's downstream rare earth sector and value chain.

Processing Advantages

Metallurgical testing by Meteoric indicates that Caldeira's rare earth carbonate can be processed by POSCO without additional refining steps, potentially streamlining the supply process for critical minerals.

Conditions and Next Steps

The memorandum remains subject to:

• Due diligence
• Internal approvals
• Completion of definitive agreements

Executive Commentary

"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."

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— Stuart Gale, Managing Director, Meteoric Resources

Gale added that both teams have worked cohesively over many months to establish the partnership, which will support the development of Brazil's rare earth industry and ensure a secure supply chain for the Republic of Korea.

Background

In January 2026, Meteoric secured a non-binding, conditional letter of support for financing of up to $50 million (A$74.71 million) from Export Finance Australia to back the Caldeira Rare Earth Project.

This article was originally created and published by Mining Technology, a GlobalData owned brand.