Government Plans Emergency Stockpile of Rare Earths for 180 Days

Neodymium Oxide Price Up 75.2% YoY
Stockpile Expansion Plan Revision Unavoidable

China Rare Earth Global Times Capture

The government had planned to secure up to 180 days' worth of stockpiles of rare earth elements, a key strategic material, this year, but the sharp rise in raw material prices is expected to inevitably disrupt the plan.

According to the Korea Mining and Resources Corporation's Korea Mineral Information Service (KOMIS) on the 6th, the price of neodymium oxide, a major rare earth item, was $159,000 per ton as of the 1st, up 75.2% compared to the same period last year ($90,750). Although it peaked at $192,300 in early February and then declined, demand remains high, maintaining a level significantly above that of a year ago.

Rare earth elements are representative strategic resources used as core materials in advanced industries such as semiconductors, smartphones, wind power generation, and electric vehicles. In particular, domestically, their utilization has increased as key materials for permanent magnets used in electric vehicle motors, mainly importing middle rare earths such as neodymium, cerium, indium, and praseodymium.

The government allocated a total budget of 11.2 billion won to expand the rare earth stockpile from an average of 100 days to 180 days this year, due to the increased demand for rare earths both domestically and globally. The problem is that, contrary to the original plan, the price of rare earths has nearly doubled on average over the past year, making it difficult to secure 180 days' worth of stockpiles.

According to the status of rare metal stockpiles secured by the Korea Mining and Resources Corporation, as of last month, rare earths are held at an average of 100 days' worth. The Ministry of Trade, Industry and Energy is seeking alternatives such as reducing the number of rare earth items or cutting stockpile volumes internally to reflect the unexpected price surge. A ministry official said, "With a limited budget, it is impossible to fill the planned quantity at the current market prices, so we are reviewing various options including phased procurement."

Some voices argue that securing a stable supply chain and reducing dependence on specific countries should take priority over expanding stockpile volumes. Kang Cheon-gu, an invited professor at Inha University's Department of Energy and Resources Engineering, said, "Rare earths cannot fully demonstrate their functionality if stockpiled for more than three months, so simultaneous release is essential. If supply chain security is not smoothly achieved, future rare earth supply could become more difficult."

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