Seongan Signs Purchase Agreement with MP Materials, the Largest Rare Earth Mining Company in the U.S.

Seongan announced on the 1st that it signed a purchase agreement for neodymium-praseodymium (NdPr) oxide with the U.S. rare earth mining company MP Materials on the 31st of last month. The contract period is one year starting from October.

Seongan plans to purchase a minimum of 240 tons of NdPr oxide produced by MP Materials. The purchase price will be based on the Asian metal market price agreed upon by both parties.

In July, Seongan already began producing NdPr metal prototypes at its factory in Binh Duong Province, Vietnam. Starting in October this year, Seongan plans to produce NdPr metal at the Vietnam factory using NdPr oxide from MP Materials. NdPr metal is a key component of permanent magnets widely used in many fields such as ▲electric vehicles ▲wind turbine generators ▲elevators.

With this purchase agreement, Seongan will become the first domestic company to produce metal, a major material for permanent magnets, based on rare earth oxides produced in the U.S. Additionally, Seongan plans to undergo a metal production capacity and product inspection by MP Materials within this year. If it meets MP Materials’ standards, Seongan intends to increase NdPr metal processing collaboration and NdPr oxide purchase volume through further negotiations.

Depending on additional negotiations and contract signings in the future, Seongan will be able to purchase up to 2,000 tons of NdPr oxide annually from MP Materials.