Here is some more information / development on the JV between VTRE and Setopia.
"Setopia announced on the 10th that it had signed a main contract with Vietnam Rare Earth JSC (hereinafter VTRE), a rare earth raw material company located in Vietnam, to establish Global Critical Material Limited (GCM), a joint venture for the creation of rare earth clusters in Korea
. Topia plans to acquire 600,000 shares of GCM on the 25th, ahead of VTRE, and the acquisition amount is known to be 3 billion won. VTRE plans to invest in GCM through a paid-in capital increase as soon as investment procedures such as foreign direct investment reporting are completed.
This contract was signed with VTRE in March based on the contents of the MOA. GCM will be the exclusive supplier of Vietnamese rare earth oxides from VTRE in the future. The supplied rare earth oxides are known as NdPr oxide used in neodymium permanent magnets, dysprosium (Dy), and terbium oxide, and various rare earth oxides supplied by VTRE to Korea are expected to be supplied through GCM in the future.
In addition, it is known that it contains details for establishing a rare earth permanent magnet supply chain and forming clusters, such as the establishment of a permanent magnet metal factory and a secondary refinery. The two companies set the initial capital of the joint venture GCM at 5 billion won and plan to acquire a 60% stake in Setopia and a 40% stake in Vietnam VTRE, and the acquisition is expected to be completed on May 25.
Dysprosium and terbium, which are medium rare earth oxides to be supplied through GCM, are evaluated globally as rare earth resources with strategic value because of their low reserves and difficulty in replacing them.
An official from Setopia said, “The direction and direction of GCM, a joint venture corporation that will serve as a bridgehead between the two companies in close cooperation with VTRE so that it can stably supply high-purity Vietnamese rare earth oxides to domestic companies and sell oxides to domestic and foreign companies excluding Vietnam. We will establish the purpose well," he said. "We will soon proceed with the establishment of an R&D laboratory for the development of future production facilities, refining and manufacturing technologies, and recycling technologies for waste magnets."
He added, "We plan to select a location that can maximize efficiency by reviewing the establishment of a secondary refinery plant, which is an essential element for the formation of rare earth permanent magnet clusters, from various angles, including in Korea and Vietnam."
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