With growing demand in the past few decades, industry experts forecast Vietnam’s rare earth mining industry will expand quickly.

Rare earths are a vital component for manufacturing numerous products, such as smartphones, electric vehicle (EV) batteries, and other renewable energy technologies.

As industries and individuals are seeking to transition to using more sustainable energy in a move to slow down global warming, rare earths are steadily climbing the top of the list of most sought-after commodities on the international market.

Amid economic and political tensions with the United States, the leading source of rare earth minerals – China is now seeking to expand into different territories.

According to a recent Reuters report, two magnet manufacturers based in China and Japan are seeking to open production plants in Vietnam, as the Southeast Asian country is a vast resource of rare earths.

“South Korea’s Star Group Industrial (SGI) and China’s Baotou INST Magnetic would join companies in sectors as varied as electronics and automobiles in shifting assembly lines against a backdrop of increasing trade restrictions, with clients even requesting the move,” Reuters reported citing sources close to the matter.

Tapping into Vietnam’s rare earth deposits will place the country high on the map of serious competitors.

The project by SGI is expected to produce “5,000 tons of high-end neodymium (NdFeB) magnets per year, enough for 2 million EVs,” Reuters said.

In the meantime, local authorities have approved Apple supplier Baotou INST Magnetic’s plant lease, and the magnet manufacturer is scheduled to begin operations as early as next month in northern Vietnam, according to sources.

Foxxconn, which is another Apple supplier based in Taiwan, also announced a new investment totaling $246 million for the construction of a 6.3-hectare plant in the Quang Ninh province in northern Vietnam.

Additionally, Strategic Materials, a firm based in Australia, signed a contract with a rare earths refining company to export products to South Korea, Reuters said.