Meteoric Resources Ltd. has signed a memorandum of strategic partnership with South Korea’s POSCO International Corp., establishing a framework to supply rare earth materials from the Caldeira rare earth project in Brazil.
Under the agreement, POSCO could secure up to 30 per cent of Caldeira’s mixed rare earth carbonate (MREC) production for up to seven years.
The proposed supply will support POSCO’s integrated mine-to-magnet supply chain, which targets critical permanent magnet applications across electric vehicle traction motors, robotics, data centres, and defence equipment.
The partnership provides a clear pathway for POSCO to assist in project financing for Caldeira. This includes potential direct equity investment in Meteoric, as well as facilitation of debt financing through Korean Export Credit Agencies such as the Export-Import Bank of Korea (KEXIM) and K-SURE.
Recent metallurgical testing confirmed that Caldeira’s low-impurity MREC product can be processed directly by POSCO without requiring additional refining steps, streamlining end-to-end processing operations.
“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,” Meteoric Managing Director Stuart Gale said.
“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.”
Beyond raw material offtake, POSCO and Meteoric plan to collaborate on technology exchanges and downstream processing capabilities within Brazil.
Final pricing mechanisms will be determined during commercial negotiations, referencing the Asian Metal Index alongside potential floor prices and upside-sharing provisions.
POSCO and Meteoric will also explore opportunities for the exchange of industry knowledge and best practices to support the long-term development of Brazil’s rare earth value chain.
While the memorandum remains non-binding and subject to definitive documentation, discussions between the two companies are ongoing.
