Background_National Strategic Project for Metal Elements

An opportunity to facilitate early recovery from a crisis caused by lack of access to rare metals and augment the industrial structure with virtuous circle

• Price volatility, supply contraction, and intensified competition for demand → Increasing calls for measures to obtain self-reliance in rare metals
• Weak value chain in the material industry → Increasing demand for boosting up materials industry with enhanced research capacities and improving self-reliance in raw materials

External Conditions (serious challenges)

• Price volatility heightens
• Supply of rare metals shrinks
• Competition for demand of rare metals deepens

Domestic Conditions (Korea in Peril)

• Dependence on overseas materials → vulnerable to external conditions
• Excessive consumption of rare materials aggravates
• Absence of the materials industry → strategic limits

Improvement Strategy (Integrated SMART)

• Multi-dimensional strategy focused on materials
• A strategic project for elements tailored to Korea
• Korea Institute for Rare Metals

Prospects (Opportunities for Improvement)

• The materials industry promoted
• Self-reliance regarding rare metals enhanced
• Industrial structure reinforced

Strategy_Differentiated research and development that factors in conditions of domestic industry, technological level of materialization, value change, and demand trends.

Differentiated supply-stabilization strategy reflecting maturity of domestic industry for each metal element.

• 태동기 : 물질 흐름 전반에 걸쳐 국내 산업이 없는 소재군
• 성장기 : 미약하나 일부산업이 형성되어 있는 소재군
• 성장기 : 국내 광물자원 부존 소재군
• 정착기 : 합금철 중심의 철강산업同 소재군

원소별 국내산업 성숙도에 따른 차별화된 공급 안정화 전략1(구분, 자원, 기초소재, 중간소재, 재활용으로 구성되어 있습니다)

category		resource	base material	intermediary material	recycling
Industries Matured	Nickel Chrome Manganese Molybdenum Vanadium	X	O	O	O
		· Domestic industries already exist, mostly using alloy iron · Mutual growth with the steel industry, the main consumer
Self-reliance in Sight	Nickel Chrome Manganese Molybdenum Vanadium	O	X	O	X
		· Domestic industries already exist, mostly using alloy iron · Mutual growth with the steel industry, the main consumer
Infrastructure Being established	Nickel Chrome Manganese Molybdenum Vanadium	X	△	△	△
		· Domestic industries already exist, mostly using alloy iron · Mutual growth with the steel industry, the main consumer
Industries Non-existent	Chrome Manganese Molybdenum Vanadium	X	X	X	X
		· Domestic industries already exist, mostly using alloy iron · Mutual growth with the steel industry, the main consumer

Early transformation of five top-priority elements into growth engines→ Extended application of five priority elements in the near future.

- Identification of weak points in the material cycle of “resources-materialization-products-recycling” for each element → Completion of virtuous circle though obtainment of required technologies

* Technologies with priorities of development: 20 technologies (five top-priority elements in 2015) → 40 technologies (5+5 elements in 2020), and 10 world-leading technologies

- For the elements with high instability of supply, which results from prospect of resource depletion and uneven regional distribution of reserves, it is an imperative to reduce the consumption of related elements and develop alternative materials and recycling technology → Facilitation of domestic self-reliance

Strategic Measures_Comprehensive and flexible R&BD, utilizing mid-level organizations of specialized research labs.

Multi-dimensional research development considering the following flow: target elements→ current status of enterprises→ level of technology→ ripple effects on the market

• Business model geared towards infrastructure building : To develop core strategic industrial technologies, centered around seed companies, and engage with consumer companies
• Business model without domestic industries (domestic product companies exist): To establish a pilot infrastructure through research conducted by both production companies and intermediary organizations → to expand the business of existing corporations and seek start-up corporations
• Business model for leading the industry: To use intermediary organizations as material supply bases for pioneering research (new products, reduced and alternative elements) → When mass-produced, developed products and materials can be useful for business advances of materials firms.
• To avoid sporadic support, common for current R&D business, and, instead, adopt multi-dimensional, simultaneous execution of strategy for early achievement of outcomes → To stabilize supply and maximize ripple effects on the industry through the omni-dimensional deployment of material technology and circulatory materialization technology for base materials of each element, intermediate materials, and reduced/alternative materials