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POSCO Holdings Inc. (NYSE:PKX) is one of the undervalued stocks with high upside potential. On May 21, ReElement Technologies and Posco International formed a $200 million JV to develop the first integrated rare earth separation and permanent magnet production facility in the US. The initiative aims to establish a secure, non-China supply chain for critical industries, including electric vehicles, defense, and renewable energy, with plans to reach an annual separation capacity of 3,000 metric tons by 2028 and double that by 2030.

The partnership uses Posco's industrial market expertise and ReElement's proprietary purification technology to create a "closed-loop" system. By using both primary and recycled feedstock, the companies seek to reduce US dependence on Chinese refining (which currently controls over 90% of global permanent magnet production) and address critical gaps in the domestic supply of rare earth materials.

This deal strengthens an existing alliance between the two firms and aligns with broader US efforts to support national security and clean energy infrastructure. As the companies evaluate potential US site locations, the project is designed to be modular and scalable, providing a sustainable model to meet the surging demands of the North American automotive and advanced technology sectors.

POSCO Holdings Inc. (NYSE:PKX) is a South Korean steelmaking and industrial company. It produces and sells steel products such as hot-rolled, cold-rolled, and stainless steel, which are used in automotive, construction, shipbuilding, and machinery industries. The company also operates in energy, chemicals, and materials businesses, including lithium and nickel for batteries.

While we acknowledge the potential of PKX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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