With rare earths, Taiwan looks beyond the ‘red supply chain’ — Taipei Times
I published a feature in the Taipei Times titled “With rare earths, Taiwan looks beyond the ‘red supply chain’.”
A credible industrial opening, but not yet a complete chain
Taiwan has expertise in rare-earth separation, refining and recycling. Research at National Cheng Kung University demonstrated the selective extraction of dysprosium from magnets recovered from discarded electric-vehicle motors. The Industrial Technology Research Institute (ITRI) has separately reported producing high-purity oxides and metals and testing materials with companies and universities.
Those results establish a technical foundation. They do not yet demonstrate a complete and profitable supply chain capable of delivering the right composition, at consistent quality and sufficient volume, to manufacturers at an acceptable price.
The real constraint: feedstock and recycling economics
China’s dominance makes diversification urgent: according to the International Energy Agency, China accounted for 91% of refined magnet rare earths and 94% of sintered permanent-magnet production in 2024.
Yet a large electronics industry does not automatically provide an accessible supply of magnets for recycling. Leo Chang (張永撙), vice president of UWin Nanotech, argues that Taiwan’s main constraint is less its technical capability than feedstock availability and overall economics. Concentrated, valuable waste streams such as end-of-life permanent magnets are the most credible starting point.
A strategy connecting supply to buyers
The government plans a pilot production line within three years and aims by 2030 to produce domestically half of an anticipated annual requirement of about 2,000 tonnes. Taiwan could combine selected recycled material with imported feedstock, including through partnerships with Australia, Canada or the United States.
Kristy Hsu (徐遵慈), of the Chung-Hua Institution for Economic Research, proposes linking Australian resources, Taiwanese manufacturing capabilities and US technology, capital and markets. Leo Chang also sees an opportunity to export Taiwanese equipment and know-how to regional recycling plants located closer to the waste.
Success will not be measured only in announced tonnage or laboratory purity. It will depend on contracts, available feedstock, identified buyers and repeat deliveries at the right price. Building that industrial continuity is the practical task for the future pilot line.