Friday, November 27, 2009

Lithium and REE: South Korea to invest $259 mln in rare metals by 2018 TNR.v, CZX.v, WLC.v, LI.v, RM.v, CLQ.v, SQM, FMC, ROC, AVL.to, RES.v, QUC.v, F



Everybody would like to secure supply of Lithium and REE. Hong Kong 5th REE conference was all about China and its place in global supply chain of REE - nobody knows for sure how much do they have available now and there are some estimations that starting from 2014 they will consume all their production of REE. Koreans are looking into the future and investment public is following the story.

"Stratfor raises a very serious question: in green economy of the 21st century Lithium and REE become strategic commodities. We have wrote before about "Lithium in the Core of "The Next 100 Years", now it is time to invest in secured Lithium supply in North America."



Reuters - Friday, November 27
SEOUL, Nov 27 - South Korea will invest 300 billion won to develop technologies and raise self-sufficiency rates of rare metals such as lithium and magnesium by 2018, the government said in a statement on Friday. In the private sector, POSCO <005490.ks> will invest 2.8 trillion won in five sectors including rare metals, non-ferrous metals, carbon materials, future new materials, and recycling through 2018, the statement said. LS Nikko will spend 500 billion won in expanding production of rare metals by 2020. "Local demand on rare metals has been rising sharply along with the growth of future advanced businesses including LCD and hybrid cars," the statement said.
"Through the investment the government aims to raise the self-sufficiency rates of rare metals from current 12 percent to 80 percent by 2018."
South Korea's SK Energy <096770.ks> said in October it would supply lithium-ion batteries for a hybrid electric vehicle project for Daimler unit Mitsubishi Fuso, joining the competition with early movers in the sector including LG Chem <051910.ks> and Samsung SDI <006400.ks>.[ID:nSEO13078]
The statement also said as part of the investment POSCO will set up a magnesium refining plant to produce 10,000 tonnes a year from 2011 and 100,000 tonnes from 2014 in an eastern province of Kangwon, which accounts for 40 percent of magnesium ingots buried in the country, to reduce imports of magnesium ingots. ((meeyoung.cho@thomsonreuters.com; +82 2 3704 5653; Reuters Messaging: meeyoung.cho.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))"

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