Setopia Signs Rare Earth Oxide Supply Contract... "Full-Scale Launch of Rare Earth Business"

Setopia announced on the 31st that it has signed a contract to supply 120MT (Metric tons) of oxides to a Hong Kong-based company engaged in the rare earth business.

Under this contract, Setopia will supply 120MT of praseodymium-neodymium (PrNd) oxide to the buyer based in Hong Kong over the course of one year. The company name has been kept confidential at the buyer's request. The unit price agreed upon at the time of the contract is approximately $6.76 million (about 8.9 billion KRW), but the final supply price is expected to be determined based on international mineral market prices and mutually agreed standards.

Setopia is receiving high-purity rare earth oxides with a purity of over 99.5% from VTRE (Vietnam Rare Earth JSC.), a rare earth raw material company based in Vietnam. The initial supply shipment arrived at Busan Port on the 28th. It is expected that 50MT of NdPr oxide will arrive by November, and the rare earth oxides to be distributed in the future will be procured through GCM (Global Critical Material), a joint venture established with VTRE.

A company official stated, “Since launching the rare earth new business, meaningful sales have begun to occur. Furthermore, beyond the distribution of rare earth oxides, we aim to grow into a recognized rare earth company by establishing a rare earth value chain that can create high added value, including smelting rare earth metals such as NdPr metal and Dy metal (Tb), which are the main raw materials for permanent magnets, as well as manufacturing permanent magnets. We will secure stable raw materials, metal smelting, and manufacturing technologies.”

Setopia has established a local Vietnamese corporation (GCM VINA), a 100% subsidiary of the joint venture GCM established with VTRE, and is proceeding with the construction of local metal production facilities.

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