FRANCE-SCIENCE-RECYCLING-ENVIRONMENT-ECONOMY
The Industrial Technology Research Institute (ITRI) of Taiwan plans to build a rare earth demonstration plant, aiming to achieve an annual production capacity of 500 metric tons by the end of 2030. This is intended to meet approximately 50% of domestic rare earth demand and reduce the risk of supply shortages of key raw materials. (The image is for illustrative purposes only and may be intended for the semiconductor industry. Please verify the source and content of the photo when publishing.)

[Hsinchu, Taiwan, Oct. 24] Taiwan's Industrial Technology Research Institute (ITRI) is planning to build a rare-earth pilot plant, with the goal of raising annual production capacity to 500 tonnes by the end of 2030 and meeting about half of Taiwan's rare-earth demand. As China's rare-earth export controls create supply-chain risks, Taiwan is accelerating efforts to develop domestic production capacity for critical materials.

According to a report by the Central News Agency, ITRI President Chang Pei-jen said the pilot plant remains in the planning stage. Construction is expected to be completed by the end of 2028, after which separation and processing technologies will continue to be refined toward the target of producing 500 tonnes annually by the end of 2030.

ITRI's existing rare-earth experimental production line has an annual output of about 5,000 kilograms and is mainly used to develop technologies for rare-earth separation, metal production and advanced magnets. If the pilot plant reaches its planned capacity, annual output would be about 100 times that of the current experimental line.

Rare earths are important materials for a wide range of high-tech products and industrial equipment. Related magnetic materials are used in motors, precision machinery and semiconductor manufacturing equipment. Even when rare earths are not directly incorporated into finished products, supply disruptions could affect the production of equipment components, in turn disrupting chip manufacturing and other automated industries.

China plays a major role in global rare-earth production and supply chains, and its export restrictions have prompted countries to reassess their sources of critical raw materials. Reuters also reported recently that TSMC is seeking alternatives to rare-earth components in its factory equipment to reduce potential operational risks arising from the export controls. TSMC did not comment on that report at the time.

ITRI said Taiwan's demand for rare earths is relatively limited, but the materials are indispensable to certain industries. The new plant is expected to be located in an industrial park, with technology transfer to private companies to be evaluated at a later stage. The construction budget, investment model and whether the government will provide price guarantees remain under discussion.

Whether the project can reach its production target on schedule will depend on the maturity of the processing technology, funding arrangements and the level of participation by private companies. Nevertheless, building domestic production capacity has become an important part of Taiwan's efforts to reduce supply risks for critical materials.