“LNG, Rare Earths, Shipbuilding and Beyond”… The Rapid Expansion of the Korea-U.S. Industrial ...

Expanding cooperation with the U.S. in energy, minerals, and shipbuilding.
The U.S. investment and supply chain partnerships becoming increasingly multi-layered
“Korea-U.S. industrial cooperation must expand further”

Alaska Nikiski LNG Plant, USA. (Photo: Yonhap News)

[By Min-woong Park, Edaily] Cooperation between Korean companies and the U.S. is rapidly expanding across key strategic industries, including energy, minerals, shipbuilding, and defense. As collaboration widens, from liquefied natural gas (LNG) development to building rare earth supply chains and participating in U.S. Navy vessel projects, analysis suggests that Korea-U.S. industrial cooperation is becoming far more multi-layered than in the past. Industry experts emphasize that such cooperation must be accelerated further in order to respond to changes in the global supply chain amid rising global uncertainty.

According to industry sources on May 11, POSCO International signed a Heads of Agreement (HOA) last year for a strategic partnership with Glenfarne, the developer of the Alaska LNG project, and has officially launched full-scale business cooperation.

Under this agreement, POSCO International will import 1 million tons of LNG annually for 20 years, equivalent to approximately 2.2% of Korea‘s total annual LNG imports of 46.32 million tons. The company will also supply massive quantities of steel materials required for the construction of approximately 1,300km, 42-inch high-pressure natural gas pipeline for the project. In addition to offtake and material supply, POSCO International plans to participate through equity investments, positioning itself as a true business partner rather than a simple buyer, which is expected to open doors for further cooperation opportunities in the future.

In the critical minerals sector, Korea Zinc is accelerating the expansion of its rare earth supply chain within the U.S. Earlier this year, Korea Zinc signed a strategic partnership agreement with U.S. technology company Alta Resources Technologies to launch a rare earth recycling and refining operations using recycled permanent magnets. This strategy aims to secure rare earths, essential materials for electric vehicles (EVs) and the defense industry, directly within the U.S.

This partnership is expected to generate synergies with “Project Crucible,” an integrated smelter construction project being promoted in Tennessee. Project Crucible is a large-scale venture project designed to produce non-ferrous metals, high-purity sulfuric acid for semiconductors, and 11 types of critical minerals. Industry experts are noting its potential to become a core production base for strengthening Korea-U.S. supply chain cooperation.

Hanwha Ocean’s Philadelphia Shipyard. (Photo: Hanwha)

Cooperation in shipbuilding and defense is likewise accelerating. Hanwha Ocean’s Philadelphia Shipyard and Hanwha Defense USA have recently participated in the conceptual design project for the U.S. Navy‘s Next-Generation Logistics Ship (NGLS). The project marks Hanwha Group’s first participation in a U.S. naval initiative since acquiring Philadelphia Shipyard. Industry analysts view this as one of the first practical examples of the “MASGA” project, short for “Make American Shipbuilding Great Again.”

The MASGA project, in particular, is gaining momentum through active government-level cooperation discussions. The Korean government recently signed a Memorandum of Understanding (MOU) with the U.S. government to strengthen bilateral shipbuilding cooperation, is discussing the establishment of a Shipbuilding Cooperation Center. In the energy sector, expanding cooperation in nuclear power and LNG is also being actively discussed.

An industry official stated, “We are seeing a simultaneous expansion of cooperation with the U.S. across all strategic industries, including energy, minerals, shipbuilding, and defense. In response to rapidly changing global supply chains and trade environments, it is necessary to further expand cooperation across the entire industrial sectors.”

박민웅 (pmw7001@edaily.co.kr)