Export Ban on Chinese Rare Earth Magnet Manufacturing Technology... Ministry of Industry Strengthens R&D Support

The government has decided to strengthen research and development (R&D) support to minimize the impact of export ban measures on China's rare earth permanent magnet manufacturing technology.

On the 13th, the Ministry of Trade, Industry and Energy held the "2nd Industrial Supply Chain Inspection Working Meeting" to review supply chain issues related to China and seek countermeasures.

2mm work-in-progress product made during the rare earth processing stage
[Photo by AP]

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Last December, the Chinese government announced a list of export-prohibited and restricted technologies, declaring its intention to ban the overseas transfer and leakage of non-ferrous metal permanent magnet manufacturing technologies such as neodymium and samarium-cobalt. By effectively controlling the entire process from rare earth mining to production, China aims to lead supply chain dominance and increase the dependence of the US and Europe on China.

An official from the Korea International Trade Association expressed concern, saying, "Even if it is a technology export ban, it could limit the entry of new permanent magnet manufacturers into the international market, which may have long-term effects on diversifying and achieving self-reliance in permanent magnet import sources for our country. If the US-China supply chain competition intensifies, there is also a possibility that the current technology export ban could escalate into a product export ban."

An industry representative attending the meeting said, "The need to establish proactive and effective supply chain stabilization measures for core raw materials such as rare earths to prepare for future supply chain instability is continuously growing."

Accordingly, the Ministry of Trade, Industry and Energy plans to strengthen R&D support for permanent rare earth magnet manufacturing technology to minimize the impact on domestic companies. In addition, as part of the "Comprehensive Support Project for Stabilizing the Materials, Parts, and Equipment Supply Chain," an in-depth analysis of rare earth items will be conducted, and based on this, a "product-specific crisis response scenario" will be prepared.

Yang Ki-wook, Director of Industrial Supply Chain Policy at the Ministry of Trade, Industry and Energy, stated, "We will continuously monitor trends regarding China's technology export ban and closely examine the possibility of it leading to product export regulations, while devising countermeasures. We also plan to expand communication channels such as industrial supply chain inspection working meetings, industry roundtables, and field visits to listen carefully to the industry's voices on supply chain issues."

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