(Hanoi/Seoul Road Power Transmissions) With Sino-US trade The relationship deteriorates, and the supply chain continues to diversify. South Korea and China Magnetic Company plans to set up factories in China near Vietnam to produce electronic products indispensable.
People familiar with the matter revealed that the Star Group Industries and the new material company in Baotou City, China, will transfer production lines from China to Vietnam.
China occupies a dominant position in the field of magnets and rare earth metal manufacturing, and 92%of the world's magnets are produced in China.Magnet is the core component of electric vehicle batteries, smartphones, wind turbines, and cutting -edge weapons, and rare earth is a necessary raw material for magnets.
China and Vietnam are two countries in the world with the mining of rare earth to produce a complete supply chain in the lower reaches, but the magnets produced by Vietnam only account for only 1%of the global market.
In response to China's might implement trade restrictions on Hanxing Industrial Group Vietnam
Star Industry Group's goal is to produce 5,000 metric tons of Neodymiummagnet each year in 2025, which can meet the battery demand for producing 2 million electric vehicles.The production capacity of Star Industry Group accounts for about 3%of the global market. Although it is still insignificant compared to China, it is equivalent to about half of the United States' magnetic imports last year.
The person in charge of the Blue Blue of the Consulting Company, Miriman, said: "Anyone tried to build a complete supply chain from the mine to the magnet of the magnet, it will face many challenges."
Star Industry Group will invest 80 million US dollars (about S $ 109 million) to build a Vietnamese factory. It is expected to be put into production next year, which will double the annual output of 3,000 metric tons in China and South Korea.
Star Industry Group said that the investment was a "premium measure" adopted in response to China's possible trade restrictions."China is strengthening the control policy of rare earth related raw materials and technology, which leads to uncertainty of supply."
After the approval of the official approval of Vietnam, the newly approved by Vietnam in Baozett City, China, will begin operations in northern Vietnam in September in September.Ibest is a large magnet company specializing in circuit design. In 2021, it became one of the suppliers of Apple.
Sino -US trade is increasingly intense.
Two sources familiar with the Instal Investment Plan said that Sino -US trade is becoming increasingly tense. Estate's entry into Vietnam is a customer's request and shifts from China to diversified development.
Instal's initial investment is only millions of dollars, and the second stage may invest more funds to build their own factories.
Among Vietnam's magnetic manufacturers, Japan's Nobunaga Chemistry decided to double the annual output in Vietnam to 2,200 metric tons in 2017, and it has been expanding the production line this year.
In April this year, Australia's strategic material company signed an agreement with a rare earth refinery factory in Vietnam, promising to export rare earths to South Korea.
