Full-Scale Construction of Strategic Mineral Stockpile Base Begins... 200.7 Billion KRW Government Budget Approved

Construction to Start by End of Next Year, Comprehensive Completion Planned for June 2027

Interior view of Gunsan Storage Base of Korea Mine Reclamation Corporation. Provided by Korea Mine Reclamation Corporation

The government will invest 200.7 billion KRW starting next year to build a dedicated strategic reserve base for critical minerals within the Saemangeum Industrial Complex. It is expected to contribute to stabilizing the supply of minerals such as lithium, nickel, cobalt, and rare earth elements, which are essential for electric vehicles and batteries.

According to the Ministry of Trade, Industry and Energy on the 11th, the 2025 budget for the ministry, approved by the National Assembly the day before, includes a capital injection of 200.727 billion KRW to the Korea Mine Reclamation Corporation. This entire amount will be used for the new construction project of the Saemangeum dedicated strategic reserve base for critical minerals, promoted by the Korea Mine Reclamation Corporation.

The capital injection was reduced by 12.5 billion KRW from the original government proposal during the National Assembly approval process. Regarding this, a representative from the Korea Mine Reclamation Corporation explained, "The site for the reserve base was converted to industrial land, reducing land acquisition costs, which does not affect the original plan."

The 200.727 billion KRW capital injection includes 102.637 billion KRW for reserve base construction, 1.216 billion KRW for maintenance, 88.594 billion KRW for reserve expansion, and 8.28 billion KRW for the transfer of rare metals such as molybdenum and rare metals. The Ministry of Trade, Industry and Energy has been conducting a preliminary feasibility study since 2022 to newly construct the dedicated strategic reserve base for critical minerals and passed the study in December 2023.

The ministry expects to begin construction by the end of next year after procedures such as design competitions and to complete comprehensive construction by June 2027. Once the Saemangeum critical minerals reserve base is completed, the existing Gunsan base, which the Korea Mine Reclamation Corporation currently leases from the Public Procurement Service, will be integrated and operated as the Saemangeum base.

Earlier, in March, the Korea Mine Reclamation Corporation signed a land purchase contract with the Korea Rural Community Corporation for the construction of the dedicated strategic reserve base for critical minerals. The dedicated reserve base will be built on approximately 180,000 square meters (about 54,000 pyeong) within the Saemangeum National Industrial Complex and will include eight general warehouses and four specialized warehouses. Unlike other reserve bases that store minerals and daily necessities together, this dedicated reserve base will store only critical minerals.

In addition to general warehouses, specialized warehouses will also be constructed. These specialized warehouses will optimally store rare earth elements, magnesium, and other materials sensitive to temperature and humidity under strict storage conditions for long periods. The specialized warehouses will be equipped with temperature and humidity control systems, gas sensors, and will incorporate explosion-proof and seismic-resistant features.

The ministry plans to expand the stockpile of 13 types of critical minerals, currently sufficient for 51 days, to cover more than 100 days by 2031. The newly constructed dedicated strategic reserve base will systematically stockpile and manage essential critical minerals for advanced industries, such as lithium, gallium, and rare earth elements, which are expected to be expanded in the future.