Taipei: Taiwan plans to build a pilot-scale rare earth production line within three years, aiming to meet about 50 percent of its domestic demand, as announced by Minister of Economic Affairs Kung Ming-hsin. This initiative is part of a broader effort by Taipei and Washington to enhance supply chain security.
According to Focus Taiwan, the announcement came during a media briefing on the sixth Taiwan-U.S. Economic Prosperity Partnership Dialogue (EPPD), which concluded on January 27 in Washington. The dialogue centered on strategic alignment for supply chain security, cooperation on critical minerals, third-country cooperation, and strengthening bilateral economic ties.
Minister Kung highlighted the importance of rare earth minerals, which Taiwan lacks in significant reserves, and emphasized the collaboration between Taiwan and the U.S. in mining, refining, and recycling technologies for critical minerals. The Ministry of Economic Affairs is working with the Industrial Technology Research Institute (ITRI) to develop indigenous rare earth technologies, with plans to establish a pilot-scale production line.
The project aims to fulfill half of Taiwan's domestic demand, garnering strong interest from the U.S. Kung revealed that Taiwan has already completed trial production technology to initially meet around one-third of the demand. U.S. officials expressed the potential for Taiwan's model to be replicated in partner countries, enhancing global rare earth supply chain resilience and security.
The United States has committed to assisting Taiwan in securing raw materials and collaborating with Taiwan and other partners to develop rare earth production in third countries. Additionally, discussions on supply chain security included the security of artificial intelligence supply chains, leveraging Taiwan's semiconductor manufacturing and AI server strengths.
Under the Pax Silica Declaration framework, both nations aim to deepen cooperation in AI and advanced technologies with the involvement of governments and industries. Progress in drone supply chain cooperation was also noted, highlighted by ITRI's "Green UAS" agreement with the U.S.-based Association for Uncrewed Vehicle Systems International.
On bilateral economic matters, Kung urged the U.S. to expedite legislation related to avoiding double taxation, emphasizing its significance for cross-border investment.