Meteoric Signs POSCO MOU Targeting 30% of Caldeira Rare Earths for Seven Years
Meteoric Resources has signed a Memorandum of Strategic Partnership with POSCO International Corporation to advance the development and commercial production of rare earths from the Caldeira Rare Earth Project in Minas Gerais, Brazil. The proposed non-binding agreement provides a pathway for up to 30% of Caldeira’s rare earth material to be supplied to POSCO for a period of up to seven years, positioning the project within the Brazil-Korea critical minerals supply chain.
POSCO partnership positions Meteoric’s Caldeira project in the Brazil-Korea rare earth supply chain
POSCO International, a core member of South Korea’s POSCO Group, is building a mine-to-magnet supply chain focused on magnetic rare earths used in EV traction motors, robotics, data centres and defence. The Memorandum establishes a framework for Meteoric and POSCO to progress toward a binding commercial arrangement, subject to further negotiation, due diligence, internal approvals and execution of definitive documentation.
The partnership targets approximately 30% of Caldeira’s rare earth material for POSCO over a term of up to seven years. POSCO and ReElement Technologies operate a joint venture to construct an Integrated Rare Earth and Permanent Magnet Production Complex, targeting ~6,000 metric tonnes per annum of separated rare earth oxides. Metallurgical testwork has confirmed that Caldeira’s low-impurity MREC can be processed by POSCO without additional refining steps, streamlining the end-to-end processing flowsheet.
The announcement represents a significant endorsement of the Caldeira project by one of the world’s most highly respected commodity buyers and industrial groups.
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What the POSCO Memorandum delivers for Meteoric
The Memorandum outlines four strategic pillars: offtake pathway, financing support, technology exchange, and downstream supply chain integration.
POSCO has agreed to use reasonable efforts to assist Meteoric in financing opportunities, including exploring potential strategic financing participation in Meteoric and accessing Korean Export Credit Agencies. The parties are exploring financing support from KEXIM (Export-Import Bank of Korea) and K-SURE (Korea Trade Insurance Corporation), alongside a potential equity investment by POSCO in Meteoric. These financing pathways remain under exploration and are subject to further commercial negotiation.
The proposed MREC pricing structure adopts an independent pricing mechanism, initially referenced to the Asian Metal Index. Final offtake pricing is to be determined through commercial negotiation, including potential price floors and upside sharing mechanisms.
| Term | Detail | Status |
|---|---|---|
| Volume share | ~30% of Caldeira material | Proposed |
| Duration | Up to 7 years | Proposed |
| Pricing mechanism | Referenced to Asian Metal Index initially | To be finalised |
| Financing support | POSCO equity + Korean ECAs (KEXIM, K-SURE) | Being explored |
| Processing | MREC processed without additional refining | Confirmed by testwork |
The Memorandum also provides for POSCO and Meteoric to work towards the exchange and development of technology to support the downstream rare earth industry in Brazil, alongside opportunities for the exchange of industry knowledge and best practices to support the long-term development of Brazil’s rare earth value chain.
Why rare earth supply chains matter to investors
Magnetic rare earths are critical inputs for permanent magnets used in high-performance applications. These rare earth elements are essential for:
- EV traction motors powering electric vehicles
- Robotics and automation systems requiring precision control
- Data centres using high-efficiency motors and cooling systems
- Defence applications requiring reliable, high-performance materials
POSCO is building a “mine-to-magnet” supply chain, integrating upstream rare earth feedstock with downstream separation and magnet manufacturing capabilities. Securing feedstock upstream is strategically important for companies like POSCO to ensure supply chain resilience and reduce reliance on concentrated sources of supply.
The partnership supports the establishment of a secure rare earth supply chain across Brazil and Korea, aligned with ongoing Government-led critical minerals strategies. Western and allied supply chains outside China are strategically valuable as governments seek to diversify sources of critical minerals essential to the energy transition, defence, and advanced manufacturing sectors.
This context explains why a partner like POSCO — a globally respected commodity buyer and producer — validates Caldeira’s scale, grade and low-impurity metallurgical profile. The Memorandum positions Caldeira as a potential cornerstone asset in POSCO’s global rare earth value chain.
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A management endorsement and what comes next
Stuart Gale, Managing Director
“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. POSCO is one of the world’s most highly respected commodity buyers, producers and industrial businesses. As such we warmly welcome POSCO’s interest in the Caldeira Project and the prospect of long-term partnership and collaboration. This is an important positive development for the growing relationship between Brazil and Korea, two of the world’s leading economies and investment destinations.”
The Memorandum reflects advanced commercial engagement between the parties and establishes a clear pathway to finalise a binding agreement. The parties are progressing commercial negotiations toward definitive documentation.
Meteoric’s development roadmap for Caldeira includes:
- Definitive Feasibility Study targeted for completion in CY2026
- Potential Final Investment Decision in CY2027
- Ongoing commercial negotiations toward definitive and binding agreements with POSCO
The partnership provides a platform for long-term offtake, potential financing support and downstream supply chain integration, de-risking the pathway to production. Development approvals for Caldeira are reported to be well advanced. The Memorandum remains non-binding and is subject to further commercial negotiation, due diligence, internal approvals and execution of definitive documentation.
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