The South Korean government is accelerating its rare earth recycling initiative to reduce dependence on China for its supply chain. The plan includes establishing a domestic production base for rare earths using recycled permanent magnets by the end of the year, with certification procedures expected to be completed by August.
On May 28, Lim Ki-geun, Vice Minister of the Ministry of Economy and Finance, visited Seongrim Advanced Industries, a manufacturer of rare earth permanent magnets in Daegu, to assess the progress of the recycling project. This visit was aimed at reviewing strategies for the early implementation of key mineral recycling initiatives included in this year’s main and supplementary budgets.
In light of recent global supply chain uncertainties and escalating U.S.-China strategic competition, the government has identified rare earths as a critical national resource and is working to enhance its response capabilities. Rare earths are essential materials used across various industries, including electric vehicles, semiconductors, defense, and artificial intelligence, and disruptions in their supply can significantly impact the broader economy.
To support this initiative, the government has allocated 1 billion won for rare earth recycling facility support in the main budget and an additional 6 billion won for raw material procurement and 2.08 billion won for production capacity verification in the supplementary budget. The goal is to secure 100 tons of raw materials for recycling by the end of the year.
To expedite the establishment of a collection system for recycled permanent magnets, the government will begin providing financial support for related facilities and equipment starting in June. It also aims to complete preliminary administrative procedures, such as the recognition of recycled resources, by August. The Ministry of Trade, Industry and Energy will oversee facility and equipment support, while the Ministry of Environment will handle the recognition and designation processes.
Seongrim Advanced Industries and its subsidiary, Ecoreon, are recognized as leading companies in South Korea capable of recycling rare earths from used permanent magnets. Based on the supplementary budget, the government plans to initiate production capacity verification within this year.
Earlier, on May 21, the government announced measures to reduce import dependence on economically sensitive items from specific countries to below 50% by 2030. Rare earths will be managed as a focus item for concentrated procurement through 2029.
Concerns were raised during the visit that a significant number of used permanent magnets are either not being collected or are leaking overseas, highlighting the urgent need for establishing a raw material collection system and improving regulations in the initial stages.
Vice Minister Lim stated, "The rare earth recycling project is a newly established initiative aimed at proactively addressing supply chain uncertainties. We will promptly complete the certification process by August and work closely with the Ministries of Trade and Environment to ensure comprehensive support for regulatory improvements and preliminary procedure management."
* This article has been translated by AI.
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