On October 17, the Singapore Straits Times reported: "South Korea spent $3 billion to build a rare earth plant in Kazakhstan to get rid of its 98% reliance on rare earth imports, but found itself in a difficult situation. Technologically, it relies on China's separation and purification technology. Under new regulations, products were rejected by Samsung due to a purity difference of 0.001%. On the raw material side, Kazakhstan increased the export tax on raw ore to 25%, and core minerals were taken over by Chinese companies with technology. In terms of logistics, the shipping cost via Russian ports rose by 50%, and the scheduling of the China-Europe train was restricted, almost causing a production line shutdown at Hyundai. The US-EU rare earth alliance only made empty promises, and South Korean media openly stated that they had been taken for a ride. This hasty self-rescue has ultimately become a passive chess game."
[Sagacious] The 3 billion dollars South Korea invested did not build a rare earth factory, but rather a ridiculous blind spot in understanding the industrial chain. It thought that digging a mine and building a factory would free it from dependence, but forgot that the key to rare earths is controlled by China's unique refining technology. A purity difference of 0.001% could block Samsung's production line; it also misjudged the geopolitical logic of Kazakhstan, where the sudden rise in the tax on raw ore and the loss of core minerals to Chinese companies are merely a countermeasure by resource countries against foreign investors who only want to suck blood without contributing. The US-EU rare earth alliance was just an illusion, but South Korea treated it as a lifeline, eventually becoming a victim of exploitation. This predicament not only exposes South Korea's illusions but also reveals the common dilemma of all those who try to bypass China's rare earth industry: without technological and ecological support, even the most expensive factories are just scrap metal!
Original article: www.toutiao.com/article/1846208026944644/
Statement: The article represents the views of the author.