Sung Yun-mo Conducts On-site Inspection of Rare Earth Supply Chain... Preparing Supply Measures Against China's 'Weaponization'

Minister of Industry Visits Daegu Seongrim Advanced Industry
"Preparing Development Measures for Rare Metal Industry to Enhance Supply Chain Stability"

[Sejong=Asia Economy Reporter Kwon Haeyoung] As concerns over supply shortages rise due to China's weaponization of rare earth elements, the government is set to introduce measures to stabilize the supply chain of rare metals, including rare earths. Rare earth elements are key raw materials for advanced products such as semiconductors, smartphones, electric vehicles, and military weapons. However, with China, which accounts for 80% of global production, reducing its output, countries worldwide are facing an emergency to secure rare earths.

On the 19th, Sung Yun-mo, Minister of Trade, Industry and Energy, visited Seongrim Advanced Industry in Daegu, a company producing rare earth permanent magnets for electric vehicles, stating, "We are preparing development measures for the rare metal industry to build a robust rare metal ecosystem that enhances the stability and resilience of our supply chain," he announced.

Minister Sung emphasized, "With the growth of new industries and the push for carbon neutrality, demand for rare metals including rare earths is expected to increase, intensifying competition among countries. We will promptly establish measures to strengthen a triple safety net of rare metal stockpiling, international cooperation, and recycling, and enhance supply chain stability through solidarity and cooperation between demand and supply companies."

This visit was conducted as part of an on-site inspection of the rare earth supply chain. Seongrim Advanced Industry, which Minister Sung visited, operates a corporation in China producing magnet metals, and processes and manufactures final permanent magnet products domestically to supply Hyundai Motor Company. At this event, Minister Sung held an on-site meeting with rare earth material and component companies, as well as demand companies such as LG Electronics and Hyundai Motor, to listen to industry trends and inspect production lines.

Participants in the meeting noted that demand for rare earth permanent magnets is expected to surge due to the increase in electric vehicle and wind energy production, emphasizing the importance of strengthening supply chain stability through a stable domestic material production base.

Minister Sung stated, "We will support the growth of promising rare metal material companies and expand technology development in alternatives, reduction, and recycling," adding, "We will establish a strong public-private promotion system to stabilize the supply chain."

This content was produced with the assistance of AI translation services.