Tesla’s Rare Earths Shift Propels Rally in Korean Ferrite Stocks
- Samwha Electronics jumps nearly 270% in seven sessions
- It is not known if these firms will supply to Tesla: DS Asset
Speculation is growing that ferrite is the most likely candidate to replace rare earths in Tesla’s electric vehicles.
Photographer: Eric Thayer/BloombergThis article is for subscribers only.
Two months after Tesla Inc. unveiled plans to drop the usage of rare earths in its future models, ferrite stocks in South Korea are skyrocketing on bets that the material will be an alternative.
Samwha Electronics Co., which manufactures magnetic materials such as ferrite core and ferrite absorbers, surged by the daily limit of 30% on Tuesday, taking its gains over seven sessions to nearly 270%. EG Corp., a Korean iron oxide manufacturer which supplies to ferrite core makers across Asia, also jumped by the daily limit. CQV Co. and Union Materials Corp. also soared.