Amid the significant rise in demand for electric vehicles and rechargeable batteries, the Government of South Korea has reportedly announced that it is planning to increase its stockpile of the rare metals.
According to the Ministry of Trade, Industry and Energy, South Korea is planning to maintain rare metals of at least 100 days' worth in order to address the possible uncertainties in their supply. This number represents a significant rise when compared to the current 56.8 days.
If sources are to be believed, the country has been working on categorizing 35 different types of resources as rare metals, apart from common metals like copper and steel.
Quoting the International Energy Agency statistics, the ministry mentioned that the global demand of such critical minerals is estimated to increase fourfold by the end of 2040 as compared to 2020.
The government further stated that it intends to promote recycling of such rare metals in order to expand its self-sufficiency with regards to such resources. The country aims to establish a system, under which it can collect discarded rechargeable batteries and solar panels in an organized way. The government added.
Reportedly, South Korea is also planning to extend its support to research projects and offer tax incentives for the businesses involved in rare metal industry with an aim to foster 100 firms by 2025.
For the records, other countries, such as the U.S. is also taking consistent efforts to improve their domestic supply of rare metals. In March 2021, the U.S. Department of Energy announced to allocate up to $30 million to support the scientific research that will allow the American companies to reliably tap into the domestic supply of rare minerals and elements required to develop clean energy technologies.