I think you are right and it was big mistake (naive) to build the plant in SK. Not sure if it's feasible to move it here or cheaper to build new one. Either way it will be additional cost incurred. Cand ASM afford it. But do they have any choice? everyone talks about the geopolitical shifts and the need to reduce or eliminate the dependence on Chinese rare earths. But it seems many underestimate how geopolitics works and SK's dependence on China.
Before that to happen (SK and Japan to cut their ties with China) a lot more needs to happen - probably hot war in Taiwan or perhaps even more. Hence why, under current environment SK will not risk such move. If SK threatens Chinese rare earth dominance, China can send SK bankrupt within 6 months by simply cutting the influx of Chinese tourists and boycott few SK brands. They did this few years ago (over THAAD deployment) and SK fell on their knees begging China to forgive them.
Basically, only US is able to force SK to make such hostile move against China. And can only happen if we are preparing for hot war against China. If anyone thinks IG and "his connections" or any Aus politician can pull this off, then I have a bridge to sell you. And if US does it then do people seriously think an Aussie company will be allowed to take over the business? It will be a US company. Tha's how the world works. When US made us bark China, China, China and China had it and put sanctions on number of our products (food mainly) where do you think they moved the business to? They are buying from US companies.
Building the plant here would have been the best option. But that ship sailed long time ago.
ASM Price at posting:
$1.10 Sentiment: None Disclosure: Not Held
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