Rare Earths for Korea
While the US once again ‘studies the issue’ a South Korean provincial government has taken matters into its own hands and has signed a MOU with Australian Strategic Metals (ASM.AU) to begin the process of building a rare earth processing plant in Ochang, South Korea. The plant, which will cost between $35m and $45m would initially produce 5,200 tons/year with expansion plans for an additional 10,000 tons by 2024. The Chungcheong Provincial government will provide utility service, licenses, and a grant if the company’s board approves the final project plans, which is expected to be finalized in June of this year.
The objective of the project is to reduce South Korea’s reliance on Chinese rare earths, which are key components in both semiconductor and display production. With China as the dominant player in the mining and processing of rare earth materials, South Korea is particularly vulnerable to the Chinese government using rare earth exports as a way to counter other trade sanctions. While the US is a rare earth producer, it is still an importer, with relatively little processing capacity and relatively low stockpiles, a very sensitive issue for both the semiconductor and aerospace industries. The MOU would put the Australian company’s plant near both semiconductor and display production facilities, and would reduce the country’s dependence on Chinese rare earth imports by a significant amount when completed.
The objective of the project is to reduce South Korea’s reliance on Chinese rare earths, which are key components in both semiconductor and display production. With China as the dominant player in the mining and processing of rare earth materials, South Korea is particularly vulnerable to the Chinese government using rare earth exports as a way to counter other trade sanctions. While the US is a rare earth producer, it is still an importer, with relatively little processing capacity and relatively low stockpiles, a very sensitive issue for both the semiconductor and aerospace industries. The MOU would put the Australian company’s plant near both semiconductor and display production facilities, and would reduce the country’s dependence on Chinese rare earth imports by a significant amount when completed.
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