The world is "thirsty" for rare earths
Rare earths are essential raw materials in a range of high-tech industries such as the production of smartphones, electric vehicles, modern weapons and the aerospace industry. China currently dominates the global rare earth market, controlling about 70% of the world's supply of important rare earth minerals. Statistics show that from 2020 to 2023, the US imported up to 70% of rare earths from China. Late last year, amid escalating trade tensions, China banned the export of a number of important minerals widely used in the military field. Previously, in 2023, the country also banned the export of rare earth magnet manufacturing technology...
To successfully develop the semiconductor industry, Vietnam needs to accelerate with the "trump card" of rare earth.
PHOTO: NGOC DUONG
Rare earth is also an advantage that can attract large technology corporations in the world, which have come to Vietnam to cooperate, open factories, and expand investment in recent times. From Foxconn Technology Group, GoerTek and Luxshare Precision Industry - manufacturers of many components and products for Apple - all have production facilities in Vietnam. However, it is worth mentioning that despite the shift of production to Vietnam, most factories still carry out the final stages of production such as assembly and packaging. Rarely do investors carry out the first stages such as chip and magnet production... Meanwhile, in terms of advantages, Vietnam owns the second largest rare earth reserves in the world, after China. An article on Bloomberg commented: "As the name suggests, this type of mineral is very rare and plays an important role in modern industry. Many types have unique electromagnetic properties that make them useful in electronics, electric vehicles, medical devices and lasers. With huge reserves of rare earths, Vietnam attracts foreign attention." In fact, not only the US, modern global industry needs rare earth materials.
Dr. Nguyen Minh Tuan, Institute of American Studies (Vietnam Academy of Social Sciences) commented: Vietnam's rare earth resource reserves are ranked second in the world, but the output supplied to the world is still limited. Specifically, Vietnam's rare earth mining output is among the countries exploiting less than 4% of the total global rare earth supply. Vietnam's raw rare earth output from 2000 - 2011 was about 400 tons, in 2019 and 2020 it was 1,300 tons and 1,000 tons respectively. Up to now, the information we have is that only 4 large-scale rare earth mines located in the Northwest region have completed exploration. Of which, 2 mines have been licensed for exploitation: Dong Pao and Nam Xe.
Vietnam can absolutely use the "trump card" of rare earth to exchange and seek early opportunities to join the strategic material supply chain with major partners... We are having a strategy to develop the semiconductor industry, so this is the final stage that we need to overcome to promote the construction of a semiconductor industry that will soon take shape and become a block.
Energy expert, Dr. Khuong Quang Dong
What advantages for Vietnam?
Energy expert Dr. Khuong Quang Dong said that rare earth is one of the strategic materials for semiconductor production. China used rare earth and other minerals as a "deterrent" weapon when needed. Now, Ukraine's rare earth is also being brought to the negotiating table for peace for this country. Not only the US, the global 4.0 industry is racing to obtain the supply of important minerals such as rare earth, used for semiconductors, mobile phones and other products. Vietnam does not have environmentally friendly mining technology and deep processing technology, which is a huge obstacle to increasing its advantages. However, in recent times, the US, South Korea... have discussed cooperation with Vietnam in a mutually beneficial direction, such as exchanging technology and minerals.
"Vietnam can absolutely use the rare earth "trump card" to exchange and seek early opportunities to join the strategic material supply chain with major partners. To narrow the trade surplus, we can promote exploitation cooperation with the US and import machinery from there. We are having a strategy to develop the semiconductor industry, so this is the final stage that we need to overcome to promote the construction of a semiconductor industry that will soon take shape and become a block," Mr. Dong analyzed.
Dr. Nguyen Minh Tuan also agreed: Currently, the US government still aims to bring the rare earth mining and processing industry back to the country, but it must still ensure environmental safety regulations in mining and separating rare earths. In the short term, when there is no new rare earth separation technology, it is certain that the US will promote partnerships to supply rare earths outside of China. This will be an opportunity for other countries with the potential to supply rare earths in the world, including Vietnam.
"The US always has a need for rare earths to supply its semiconductor industry, so signing agreements with countries with potential for rare mineral resources when there is an opportunity is inevitable. Currently, Vietnam and the US have upgraded their comprehensive strategic partnership, bringing a series of US technology enterprises to Vietnam, proving that the US government recognizes our potential in the supply chain. Therefore, with the "trump card" of rare earths, Vietnam needs to promote cooperation with large US technology corporations in exploiting and transferring rare earth separation technology to promote the development of the semiconductor industry," he noted.
More specifically, Dr. Nguyen Minh Tuan said that Vietnam needs to soon find a rare earth separation technology suitable for rare earth ores to hold the "trump card", promoting the opportunity to accelerate the important semiconductor industry that the Government has put forward. According to him, there are a number of points to note to effectively promote the potential and advantages of Vietnam. Firstly, the granting of a license to exploit rare earths must be accompanied by a license confirming the ownership of rare earth separation technology. Thanks to that, in order to avoid loss of resources, this measure will minimize the exploitation and sale of raw rare earths at cheap prices.
Second, the inspection and supervision of rare earth mining needs to be carried out regularly, with strong sanctions for violations. Third, it is necessary to expand cooperation with experts from other countries, especially the US and European countries, to improve the ability to find suitable rare earth separation technology for rare earth ores in Vietnam. Fourth, the US is continuing to expand its rare earth suppliers outside of China, this is an opportunity for Vietnam to promote cooperation to transfer rare earth separation technology to Vietnam...
Although rare earth is considered an important resource, with Vietnam's current technology and the cost of using current technology to exploit large amounts of rare earth for export, it is not feasible. Japan has a need for rare earth resources and has signed an agreement with Vietnam, but Japan's annual demand is not large, only about 10,000 tons. Vietnam has not yet been able to get rich from this resource because it only exports raw materials at very cheap prices.
Dr. Nguyen Minh Tuan, Institute of American Studies (Vietnam Academy of Social Sciences)
Thanhnien.vn
Source: https://thanhnien.vn/phat-huy-loi-the-dat-hiem-cua-vn-185250302221822475.htm
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