Vietnam aims to raise rare earths output to 2m tonnes a yr by ’30

Refined tellurium is displayed at the Rio Tinto Kennecott refinery, May 11, 2022, in Magna, Utah. (PHOTO / AP)

HANOI – Vietnam aims to raise its rare earths production to 2.02 million tonnes a year by 2030, according to a government plan reviewed by Reuters, as it seeks to tap one of the world's largest reserves of key industrial metals.

The Southeast Asian country has the world's second-largest reserves of rare earths – an estimated 22 million tonnes , according to the United States Geological Survey (USGS). Its rare earths production jumped to 4,300 tonnes last year from 400 tonnes in 2021, the USGS said.

Higher output will be helped by extraction from nine mines in the northern provinces of Lai Chau, Lao Cai and Yen Bai, according to the plan signed by Deputy Prime Minister Tran Hong Ha on July 18.

Under a government plan, Vietnam will consider exporting part of the refined output. Only mining companies with modern and environmental-friendly technologies will be licensed for mining and processing, it showed, without elaborating

Vietnam will develop three to four new mines after 2030, aiming to raise its raw rare earths output to 2.11 million tonnes by 2050, the document showed.

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"The objective of the plan is for the country to develop a synchronised and sustainable industry of rare earths mining and processing," it said.

Under the plan, Vietnam will consider exporting part of the refined output. Only mining companies with modern and environmental-friendly technologies will be licensed for mining and processing, it showed, without elaborating.

Rare earths are a group of elements that have applications in electronics manufacturing and batteries, making them important for the global transition towards cleaner sources of energy and in defense.

Apart from mining, the country said it will also seek to invest in rare earth refining facilities, with a target of annually producing 20,000-60,000 tonnes of rare-earth oxides (REO) by 2030.

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The plan aims to raise the annual REO output to 40,000-80,000 tonnes by 2050.