EG is showing strength. It is interpreted that this is influenced by news that the U.S. electric vehicle company Tesla is likely to use ferrite instead of rare earth elements in its next-generation electric vehicles.
As of 11:13 AM on the 25th, EG is trading at 19,000 KRW, up 3.26% compared to the previous day.
According to the mineral-specialized media Mining on the previous day, Tesla has decided not to use rare earth elements in its next-generation electric vehicles. According to this media, some rare earth elements such as neodymium and praseodymium are used when manufacturing electric vehicle motors. Tesla has used such rare earth elements in manufacturing electric vehicles until now.
However, going forward, Tesla plans to design electric vehicles to exclude rare earth elements when making electric vehicle motors. Instead, Mining reports that there is a high probability that ferrite will be used.
Regarding this, rare earth consulting firm Adamas Intelligence analyzed, “General Motors (GM) used ferrite in the 2016 Chevrolet Bolt,” and “Tesla could manufacture motors in a similar way.”
Meanwhile, EG produces high-purity iron oxide, which is used as a raw material for magnetic parts in electric vehicle and home appliance motors. As the world’s only iron oxide specialized company equipped with design, construction, and operational capabilities of roasting facilities, EG has consistently maintained the number one market share in the global high-grade iron oxide market.
EG’s iron oxide is supplied to the world’s largest ferrite companies overseas and most ferrite companies domestically and internationally, praised for its excellent quality and reliability in the global market. In the case of high-grade iron oxide, the company’s estimated market share in the global market is between 12% and 15%.
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