[Featured Stock] Seongan Materials, US Rare Earth Permanent Magnet Security Act Proposed... Spotlight on Supply Chain of Largest US Company Increases↑

Sungan Materials is showing strong performance following the news of the U.S. Rare Earth Permanent Magnet Security Act proposal. It appears that the supply contract with the largest U.S. rare earth company has been highlighted.

As of 1:45 PM on the 4th, Sungan Materials is trading at 589 KRW, up 4.62% compared to the previous day.

Last month, the U.S. reportedly proposed the "Rare Earth Permanent Magnet Security Act" to promote the production of rare earth permanent magnets within the country.

The main point of this bill is to provide extraordinary incentives to rare earth permanent magnet companies operating in the U.S. When producing rare earth permanent magnets in the U.S., companies can receive subsidies equivalent to approximately 30% (with a $20 per kg production tax credit) to 45% (with a $30 per kg production tax credit) of the sales price according to the bill.

According to industry sources, the global rare earth permanent magnet market is expected to nearly double by 2027, but China currently dominates the global market. Accordingly, the importance of rare earth permanent magnet manufacturers is emerging not only as an industrial issue but also as a matter of national security.

Meanwhile, Sungan Materials signed an annual purchase contract for 240 tons of rare earth oxides with MP Materials, the largest rare earth company in the U.S., and succeeded in producing NdPr Metal Bars (Neodymium-Praseodymium Metal Bars) with a purity of over 99.5% using U.S.-sourced rare earth oxides.

Additionally, it passed the quality test for NdPr Metal Bars from Sunglim Advanced Industry, the only permanent magnet manufacturer in Korea, and signed a supply contract for 30 tons of metal bars.

Metal bars are used as raw materials for permanent magnets, and the final NdPr permanent magnets produced have stronger magnetic force and superior durability compared to regular neodymium magnets.