South Korea dispatched a joint delegation to South American nations, Chile and Argentina on Monday. According to the South Korean government, the members of the delegation will access the possibilities to augment the global supply chain of lithium as well as other crucial minerals which are required in the production of electric vehicles, batteries and more.
The delegation’s core mineral investigations are scheduled between April 18 to April 21. Apart from augmentation studies, the delegation has also been assigned a task to apprehend routes for the further development of natural resources.
South Korea’s Ministry of Trade, Industry and Energy in cooperation with the Korea Mine & Sea Mining Corporation, POSCO E&C, Samsung C&T, POSCO Holdings and a few other big companies, placed together a public and private core mineral inquiry team for analysis of lithium and key minerals.
South Korea is one of the biggest importers of lithium. By 2026, the country’s lithium imports are expected to go up by 3.7 percent and cross 48 million kilograms. The lithium industry holds a large amount of significance since it’s interconnected with a bunch of other industries.
Because of the current minute enmities between US and China, the Korean government is diversifying its lithium supply chain away from the Chinese camp. South Korea has started bolstering its ties with countries rich in lithium, core mineral, and other resources that can sustain South Korea’s semiconductor and automotive sectors in the long run.
As per the Ministry of Trade, Industry and Energy, the Inflation Reduction Act (IRA) from the United States, as well as the European Critical Raw Materials Act (ECRMA), are proactive for Korean manufacturers and this needs to be pondered in time.
Chile is known for its vast lithium reserves. It’s the number one stop when it comes to lithium supply. The delegation’s examination will proceed with the meeting with the head of the mining ministry in Chile. Following this, the Korean delegates are going to be introduced to various other officials during the business seminar held by the South Korean and Chilean governments.
The delegation team will also plausible pursue Korean firms and their cooperative work in enriching the resources and mineral-related projects. According to a delegation member, resource nationalism has increased over the years in countries in Latin America so Korea needs to change the discourse of lithium imports and boost its bilateral cooperation with countries in the Southern region.
After the Chile visit, the delegation will similarly probe routes that can stimulate the supply chain and advance resource enrichment in Argentina. The odds of Korean companies stimulating the resources and core mineral projects will also be accessed at the same time.
In February this year, the Korean government announced the strategy for ‘Securing Core Minerals’, a strategy that specifically scrutinizes Chinese alternatives. The country plans to set its core mineral supply chain on the rectitude passage through participation in promising projects outside Korea in the coming months.
