Extract below. Quite a pivot for Setopia from drugs into REE!...

Extract below. Quite a pivot for Setopia from drugs into REE! Comes across a bit dodgy to me. The worrying aspect to me is not Setopia per se but VTRE, given they are an NdPr oxide supplier to ASM (just 100T at present) and also part of the BSX/ASM/VTRE partnership and MOU. That MOU also has the stated interest of setting up a new REE supply chain outside China. Same as Setopia/KCM et al! Is VTRE playing all the angles here and how solid is the relationship with ASM really?

The joint venture plant between Setopia and Vietnam Rare Earth JSC (VTRE), a Vietnamese rare earth element raw material company, will start operation next month. The goal of completing the only integrated value chain of rare earth elements in Korea and becoming a global leading company is becoming visible.

According to Setopia on the 25th, the metal smelting plant being built by 'GCM', a joint venture between Setopia and VTRE, through 'GCM VINA', a local subsidiary in Vietnam, will be completed at the end of this month. Mass production will begin at the end of next month, starting with the production of the first test volume.

The size of the investment in the establishment of the plant was not disclosed. GCM was established in May by Setopia and VTRE to promote the rare earth element business. The initial capital is 5 billion won. Setopia and VTRE hold 50% and 60% of the shares, respectively. Setopia aims to complete the vertically integrated rare earth permanent magnet value chain from downstream to upstream, led by GCM.

Through this, it plans to establish a stable supply chain in Korea, which relies on imports for all rare earth elements, and localize metal and alloy smelting technology. First of all, GCM receives the primary purified rare earth oxide from VTRE. NdPr oxide, dysprosium (Dy), and terbium oxide used in neodymium permanent magnets. The raw materials for rare earth oxides secured by GCM are smelted into rare earth metals at GCM Vina's plant. After that, the process will be carried out through 'KCM Industries (4.61% stake)' and 'NS World (65.29% stake)', which Setopia acquired a stake in April and this month.

KCM Industries reprocesses rare earth metals into neodymium powder. NS World produces neodymium bond magnets and neodymium sintered magnets. The finished products are delivered to Hyundai Motor, Kia, Ford, LG Electronics, Samsung Electro-Mechanics, etc.

Setopia has identified the rare earth element business as a new growth engine and is making large-scale investments. Based on stable sales in the distribution business such as steel, IT and security solutions, and e-cigarettes, the strategy is to enter the rare earth element field and achieve sales growth.

By 2025, the rare earth element business is expected to become a key driver, accounting for about 45% of total sales. Rare earth elements are a total of 17 kinds of rare minerals that have excellent chemical properties such as heat conduction and homeostasis. It is used in various fields from electric vehicle parts to electronics, abrasives for semiconductors, and aerospace, and is called the "vitamin of industry." China accounts for more than 90% of the world's supply. Rare earth-based permanent magnets have high magnetic performance and are increasing in demand around the world in line with the demands of the 4th industrial revolution for compactness, lightweight, and high efficiency, such as eco-friendly automobiles.