Novatech is showing strong performance. This is interpreted as highlighting the fact that the company has established a joint venture with a Chinese firm, securing a stable supply chain system amid news that China will ban the export of rare earth magnet manufacturing technology.
As of 9:41 AM on the 6th, Novatech is trading at 27,950 KRW, up 8.75% from the previous day.
According to foreign media, the Chinese government is reportedly pushing to ban the export of manufacturing technology for rare earth magnets needed for electric vehicles and wind power generators in order to control the supply chain.
The Chinese government plans to add manufacturing technology for neodymium and samarium-cobalt magnets to the revised "China Export Control and Export Restriction Technology List," which includes items subject to export regulations on industrial technology. China holds an 84% market share in neodymium magnets and produces over 90% of samarium-cobalt magnets. Japan’s market share for these two magnets is around 10% each.
If China enforces the ban on exporting rare earth magnet manufacturing technology, it will effectively control the entire process from rare earth mining to product manufacturing, increasing the dependence of countries like the US and European nations, which lack magnet manufacturers, on China.
Founded in 2007, Novatech created the concept of the "shield magnet" and holds patents related to it. Novatech focuses on the market using neodymium magnets (Nd-Fe-B), a type of rare earth metal magnet. In particular, it provides designs and solutions suitable for smart devices requiring high-quality specifications, such as smartphones and tablet PCs from Samsung Electronics and LG Electronics.
Meanwhile, considering changes in rare earth supply and demand due to Chinese government policies, Novatech is known to have established a rare earth sintering joint venture with a Chinese company, securing a stable rare earth supply chain system.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
