The Meteoric Resources Ltd (ASX: MEI) share price is in focus today as the company announced a strategic partnership with POSCO International to advance its rare earths project in Brazil, including a potential supply of up to 30% of Caldeira's output to POSCO and collaboration on project financing.
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What did Meteoric Resources report?
- Signed a non-binding Memorandum of Strategic Partnership with POSCO International Corporation.
- POSCO may secure up to 30% of Caldeira's rare earth material over a potential seven-year period.
- Partnership opens pathways for POSCO's strategic financing participation in Meteoric, subject to negotiation and due diligence.
- Metallurgical testwork confirms Caldeira's product can be processed by POSCO without extra refining.
- Parties will explore technology exchange and opportunities to strengthen the Brazil–Korea rare earth supply chain.
What else do investors need to know?
The agreement lays the groundwork for a future binding deal but is currently non-binding and subject to additional negotiation, approvals, and completion of due diligence. Meteoric and POSCO will also look into financing opportunities with Korean Export Credit Agencies to support the development of the Caldeira project.
This partnership aims to streamline the rare earths supply chain from Brazil to Korea, aligning with government-led critical minerals strategies. The companies will also develop technology and share best practices to boost the competitiveness of Brazil's rare earth value chain.
What did Meteoric Resources management say?
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. 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.
What's next for Meteoric Resources?
Meteoric plans to work closely with POSCO on finalising a binding supply and financing agreement, supported by ongoing due diligence and commercial discussions. The company targets completing a Definitive Feasibility Study for Caldeira in 2026, which would support a potential final investment decision in 2027.
With development approvals progressing, Meteoric's goal is to position Caldeira as a major supplier for global rare earth needs, particularly in downstream separation and new supply chains.
Meteoric Resources share price snapshot
Over the past 12 months, Meteoric Resources shares have risen 32%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 4% over the same period.
