Taiwan plans rare earth pilot-scale production line: Economy minister

Taipei, Feb. 3 (CNA) Taiwan plans to build a pilot-scale rare earth production line within three years that could meet about 50 percent of domestic demand, Minister of Economic Affairs Kung Ming-hsin (龔明鑫) said Tuesday, as Taipei and Washington step up cooperation to strengthen supply chain security.

Kung made the remarks at a media briefing on the sixth Taiwan-U.S. Economic Prosperity Partnership Dialogue (EPPD), which concluded Jan. 27 in Washington.

The dialogue focused on four pillars: strategic alignment on supply chain security, cooperation on critical minerals, third-country cooperation and bilateral economic ties, according to Kung.

On the cooperation on rare earth minerals, which Taiwan doesn't possess any significant reserves, Kung said both sides agreed that rare earth elements are vital to supply chain security and pledged to strengthen cooperation in areas such as the mining and refining of critical minerals, as well as technologies for recycling electronic waste.

The Ministry of Economic Affairs is supporting the Industrial Technology Research Institute (ITRI) in developing indigenous rare earth technologies and experimental production lines, with plans to establish a pilot-scale production line within three years, Kung said.

The project is expected to meet about half of Taiwan's domestic demand, and the U.S. side has expressed strong interest in the initiative, he added.

Taiwan has already completed trial production technology, initially designed to meet around one-third of domestic demand, according to Kung.

U.S. officials noted that once the model matures, Taiwan's experience could be replicated in partner countries to enhance the resilience and security of global rare earth supply chains, Kung added.

The United States has invested in critical mineral sources worldwide and is willing to help Taiwan secure access to raw materials, as well as work with Taiwan and other partner countries to develop rare earth production in third countries, he said.

On supply chain security, Kung said the two sides also discussed ensuring the security of artificial intelligence supply chains, a key U.S. concern.

Building on Taiwan's strengths in semiconductor manufacturing and AI servers, both sides aim to deepen cooperation in AI and advanced technologies under the Pax Silica Declaration framework, with participation from governments and industries, he said.

Progress was also reported in drone supply chain cooperation. Ahead of the dialogue, ITRI signed a "Green UAS" authorization and evaluation agreement with the U.S.-based Association for Uncrewed Vehicle Systems International, allowing certified drones to be sold commercially in Taiwan and U.S. markets.

On bilateral economic issues, Kung urged the United States to move swiftly on legislation related to an agreement to avoid double taxation, citing its importance to cross-border investment.