LS-Nikko Copper Inc., South Korean leading smelter of electrolytic copper and rare/precious metals, will embark on the production of rhodium, the rarest and most valuable precious metal in the world, in May to meet the anticipated rise in demand for the metal effective in reducing emissions.

According to an industrial source on Sunday, LS-Nikko started the testing production of rhodium with an aim to kick off its mass production before the end of May. The swelter is said to plan to produce the rare metal as semi-finished good. The silver-white metal is its first new product since the company launched rhenium, a silver-gray rare transition metal, in 2011.

Rhodium is one of the platinum group metals, and its primary use is in catalytic converters designed to clean vehicle emissions. Together with palladium and platinum, it helps reduce nitrogen oxide in the exhaust gas. Without rhodium catalyst, the air would worsen due to vehicle exhausts.

This is also the world’s rarest and most valuable precious metal costing 750,000 won ($593) per gram, ten times more expensive than gold’s 76,000 won. About 1~2g is used in one gasoline passenger car. A high-performance sports car needs rhodium worth 8~10 million won.

LS Nikko has successfully produced the rare and valuable metal, which Korea has fully relied on imports from South Africa. The smelter holds technologies to extract various metals contained in the ore. With its new technological achievement to recover rhodium, the company can produce all eco-friendly metals, including platinum and palladium.

“Only a few copper smelters worldwide can produce all the three eco-friendly metals belonging to the platinum group. We expect demand for rhodium to grow as regulations on nitrogen oxide emissions from cars will get stricter,” said an official from the company.

LS Nikko Copper achieved 10 trillion won in sales last year, 30 percent of which the company earned from valuable and rare metal production.

By Lee Yu-sup and Jenny Lee

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]