Australian Rare Earth Producers and South Korea Signed Agreement

Australian rare earth producer Australia Strategic Materials Corporation ('ASM') has reached a memorandum of understanding (MoU) with the governments of two regional governments in South Korea, stating that ASM will establish the first processing plant in South Korea for the critical mineral amid a global rush to secure supply chains.

Australian rare earth firm ASM signs South Korea deal image

ASM owns zirconium, niobium, hafnium and rare earth resources in a mining area in the Australian state of New South Wales. The company signed a factory memorandum of understanding with the Chungcheongbuk-do Provincial Government and Cheongju-si City Government.

The content of the agreement includes licenses, permits and grants, allowing ASM to locate factories near South Korean manufacturing companies that need metal, including LG Chem and Samsung SDI. The new plant will initially produce high-purity NdFeB powder and titanium powder.

strategic materials-rare earths image

The relationship between ASM and South Korea can be traced back to 2019, when ASM first invested in the clean metal processing technology of the local company Zirconium Technology Corporation. The 17 rare earth elements (REEs) are critical to many key industries, including the manufacture of smartphones, batteries, renewable wind turbines and weapons. Currently, China controls about 90 percent of the world's supply of REEs.

Since China issued a new law at the end of last year to restrict the export of REEs, the output of the rare metals has declined slightly. Australia and other REEs producing countries have also been seeking to improve the resilience of their supply chains. Australia has established the "Crucial Minerals Promotion Office" to fund projects to mine REEs and establish downstream processing in the country.

rare earths on the ASX image

Soon after the establishment of the office, officials expressed interest in supporting and funding ASM's project in New South Wales. Besides, Australian listed company, Lynas, the largest rare earth producer outside of China, has signed an agreement with the United States to build a separation plant in the United States.

 

WeChat