Strategic Rare Metal Reserves Increased from 56.8 Days to 100 Days... Fostering 100 Key Companies

Government Announces 'Rare Metal Industry Development Plan 2.0'
Stockpile Doubled...Support for Private Companies' Resource Exploration and Mining Rights Acquisition
Discover 100 Core Rare Metal Companies by 2025 to Build Industrial Ecosystem

[Sejong=Asia Economy Reporter Kwon Haeyoung] The government plans to expand the stockpile of rare metals, which are key materials for new growth industries such as electric vehicles, from the current 56.8 days' worth to 100 days' worth. It will support private companies' overseas resource development and actively nurture 100 core rare metal companies.

On the 5th, the government announced the "Rare Metals Industry Development Plan 2.0" at the 42nd Emergency Economic Central Countermeasures Headquarters meeting. This comes 10 years after two previous rare metals measures were introduced in 2009 and 2011.

We have selected and are managing a total of 35 types of rare metals, including one type of rare earth. Although industrial demand for rare metals is rapidly increasing, deposits and production are concentrated in specific regions, raising supply instability. Therefore, the government focused on establishing a stable supply chain in this plan.

First, the average stockpile of rare metals will be doubled from the current 56.8 days to 100 days. To this end, the number of days of rare metal stockpiles will be expanded and adjusted from the current 30?100 days to 60?180 days, similar to other countries, and dedicated stockpile bases will be secured and expanded. Incentives will be increased for companies recycling waste resources containing rare metals, such as electric vehicle batteries, and a recycling-based system will be systematized.

Additionally, through bilateral and multilateral international cooperation, resource exploration and joint technology development will be promoted, and to respond to China's "rare earth weaponization," the supply sources of rare metal resources concentrated in specific countries will be diversified. The private overseas resource development support program will be expanded to assist companies in resource exploration and securing mining rights.

Efforts will also focus on creating a rare metals industry ecosystem. To this end, by 2025, 100 core rare metal companies will be identified and nurtured. The target includes 20 "resource-attracting companies" with technological capabilities but insufficient commercialization, and 80 "growth hopeful companies" requiring specialization and advancement. The government plans to provide these companies with a package of financial support, equipment support, personnel dispatch, and regulatory exemptions such as the materials, parts, and equipment (SoBuJang) regulation bypass to support their full-cycle growth. A large-scale research and development (R&D) preliminary feasibility study to establish a rare metals and rare earth metal materials ecosystem is also planned for the first half of next year.

Furthermore, a public-private joint "Rare Metals Industry Development Council" will be formed in the second half of this year, and next year, legislation to support the rare metals industry and the establishment of national standards will be pursued.

Moon Seungwook, Minister of Trade, Industry and Energy, stated, "Rare metals, including rare earths, greatly influence the quality and characteristics of materials even in small amounts and are essential for advanced and new energy industries, making them the 'vitamins of industry,'" adding, "We will build a stable rare metals supply chain to create a robust industrial ecosystem."