A research team led by Dr. Jung-goo Lee from the Department of Magnetic Materials in the Powder Materials Division at the Korea Institute of Materials Science(KIMS) has successfully assisted STAR GROUP IND Co., Ltd. in localizing heavy rare earth-reduced rare earth magnets. This support included access to high-priced R&D facilities, which are challenging for small and medium-sized enterprises to establish easily, along with technical advice. KIMS is a government-funded research institute under the Ministry of Science and ICT.

Rare earth permanent magnets are a crucial material for eco-friendly industries, including electric vehicles and wind power. Recently, securing a material supply chain has gained significant attention, emerging as a crucial element for future eco-friendly industries amidst the economic and technological competition between the United States and China. However, domestic production of rare earth permanent magnets is entirely dependent on imports, and related domestic companies need to address this issue.

STAR GROUP IND Co., Ltd., the sole rare earth permanent magnet manufacturing company in Korea, has actively participated in the localization of permanent magnets for electric vehicles since 2014. The initiative began with in-house development of permanent magnets specifically designed for electric vehicles. Recently, through a technology project supported by the Korea Institute for the Advancement of Technology (KIAT) Convergence Innovation Support Group, the company received technical guidance on 'Anisotropic Rare Earth Bulk Magnet Manufacturing Technology' from the research team led by Dr. Jung-goo Lee at KIMS. This support has expedited the research and development of next-generation permanent magnets, concurrently establishing a self-reliant foundation for localizing rare earth permanent magnets.

STAR GROUP IND Co., Ltd. successfully acquired the technology for localizing rare earth permanent magnets, However, technical challenges arose during the microstructure control process due to a reduction in heavy rare earth elements. Leveraging its robust equipment infrastructure and technical expertise, Dr. Lee's research team at KIMS provided valuable technical advice and support. They optimized the characteristics of permanent magnets by implementing a hot deformation process on ultra-fine crystal grains, effectively suppressing the creation of secondary phases. This collaborative effort not only enhanced the quality of domestic rare earth permanent magnets but also contributed to the localization of permanent magnet production, thereby advancing technology and stabilizing the domestic supply chain.

Dr. Jung-goo Lee, a principal researcher at KIIMS stated, “'By localizing rare earth permanent magnets and improving technology, we have achieved the stabilization of the domestic supply chain for rare earth permanent magnets, a crucial material for electric vehicles.” He further added, “'As we anticipate entering the global market in the near future, there is an increasing need for collaborative research and development among research institutes and companies. Additionally, on-site customized enterprise technology advice and support from experts, will play a key role in strengthening our position in the global supply chain.”

Meanwhile, STAR GROUP IND Co., Ltd. was selected as one of the 100 small but strongest companies in materials, parts, and equipment in 2019. In 2020, they began supplying rare earth permanent magnets for hybrid vehicle drive motors to global automakers in Korea, and by 2022, the company successfully achieved full localization and self-sustaining production. The company established a pilot mass production plant in Hyunpung, Daegu, for the domestic production of rare earth permanent magnets and held a completion ceremony in October of this year. This accomplishment has positioned South Korea as the third country in the world to independently produce its own rare earth permanent magnets, following Japan and China.