Seongan announced on the 11th that it has placed its first purchase order based on the supply contract for U.S.-made rare earth oxide (NdPr Oxide) with MP Materials.
At the end of July, Seongan signed an annual rare earth purchase contract with MP Materials for 240 tons.
The rare earth oxide is scheduled to arrive at Incheon Port in South Korea in late December. Starting from January next year, Seongan plans to immediately manufacture rare earth metals, the raw materials for permanent magnets, through a large-scale metal reduction process based on U.S.-made rare earth raw materials.
Seongan plans to establish production bases domestically as well as overseas factories in Vietnam and other locations. To deeply manage quality and production capabilities for mass production, the first purchase quantity from MP Materials will be received domestically.
The rare earth metal business that Seongan has been preparing since early this year is expected to enter full-scale commercial production next year. A company official stated, “It is very significant that we are the first Western company to import U.S.-made rare earth raw materials, which are decoupled from China, amid the Chinese government’s recent tightening of export controls on various rare minerals and raw materials. We have already received inquiries about non-Chinese rare earth-based metal products from numerous domestic and overseas companies.”
He added, “Starting with this first import of rare earth raw materials from MP Materials, we will strengthen our collaboration in the future through thorough production management and trust-based new business progress.”
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