Signal Korea sources most of its rare earth metal imports from China

Summary

Korea is heavily exposed to China's tighter controls on rare earths and magnets in industries ranging from semiconductors, electric vehicles and batteries to motors, smartphones, electronics and wind power. In 2024 it sourced 79.8 percent of its rare earth base metal imports and 47.5 percent of its processed rare earth metal imports from China. The US Geological Survey data cited by the report show China holding 48 percent of global rare earth reserves, 69 percent of mine output, 87 percent of refining in 2022 and 94 percent of magnet processing. Risks are likely to arise when Korean firms export related products to third countries or build out global supply chains. The report reads China's re-export and technology rules as a clear sign that Beijing intends to act as a gatekeeper in high-value supply chains such as chips and magnets for electric vehicles and wind turbines.