South Korean firm Seonglim Advanced Industrial has completed its 1,000 t/yr Hyeonpung neodymium-based rare earth permanent magnet plant, which the trade, industry and energy ministry (Motie) today described as the country's first such production.
Rare earth permanent magnets are a key component of electric vehicle (EV) driving motors, with 84pc of EVs using such motors, and the new Hyeongpung plant produces enough for about 500,000 EVs/yr. South Korea's EV output was at 230,000 units in 2021 and rose to 350,000 units in 2022, according to Motie, meaning the Hyeongpung plant will likely be able to produce more than needed for domestic consumption. Seonglim was previously provided subsidies of about 11.6bn South Korean won ($8.54mn) to build production facilities in the rare earth value chain.
Motie expects this to further strengthen the domestic EV supply chain by easing the country's dependence on other countries such as China. China accounted for 94pc of global rare earth permanent magnet production in 2022, with South Korea relying on China to fulfil over 90pc of its demand in the same year, Motie added. South Korea was the third-largest buyer of Chinese permanent magnets at 4,821t in September, accounting for 12pc of China's exports.
South Korea also plans to diversify its supply chain of neodymium raw material from China to Australia and Vietnam, starting from the end of 2024. The country's ministry of foreign affairs and the US Department of State on 26 October launched a joint research programme on the use of environmentally-friendly technologies to extract rare earth elements and other critical elements from coal ash in Vietnam.
Vietnam's rare earth industry
Vietnam plans to raise its unprocessed rare earth production to 2.02mn t/yr by 2030, and its rare earths oxide production to 40,000-80,000 t/yr by 2050.
The country is preparing for an auction of new rare earth concessions in Dong Pao in northern Vietnam, which is one of the largest rare earth mines outside China.
Australian mining and exploration firms Australian Strategic Materials (ASM) and Blackstone Minerals in July signed a three-way non-binding initial agreement with Vietnam Rare Earth (VTRE) to develop a fully integrated rare earth value chain.
There is an ongoing investigation into VTRE chairman Luu Anh Tuan, but Blackstone on 23 October said "it remains committed and will continue to prepare for a potential auction of concessions in Dong Pao". ASM and Blackstone confirmed earlier this week that they are not part of and have no involvement in any investigation related to Tuan.
Vietnam has the world's second-largest rare earth reserves after China, assessed at 22mn t in 2022. Its rare earth oxide production rose sharply from 400t in 2021 to 4,300t in 2022, according to the US Geological Survey.
