Government Strengthens Supply Chain Cooperation with Australia, a 'Critical Minerals Holder'

'Korea-Australia Critical Minerals Supply Chain Meeting' Held
Agree to Cooperate in Hydrogen Sector to Establish 'Clean Hydrogen' Production Base in Solar-Rich Australia

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kwon Haeyoung] The government is strengthening cooperation with Australia, which possesses essential critical minerals for electric vehicle battery manufacturing. They also agreed to collaborate in the clean hydrogen sector to establish an overseas clean hydrogen production base using Australia's abundant renewable energy.

According to the Ministry of Trade, Industry and Energy on the 14th, President Moon Jae-in, who is on a state visit to Australia from the 12th to the 15th, attended the Korea-Australia Critical Minerals Supply Chain Meeting held in Sydney in the afternoon. The meeting was co-hosted by the Ministry of Trade, Industry and Energy, the Korea-Australia Economic Cooperation Committee, and the Korea Trade-Investment Promotion Agency (KOTRA).

Critical minerals refer to minerals such as nickel, lithium, and rare earth elements that have high economic and industrial value and demand but face significant supply and environmental risks. They are essential materials for future strategic industries such as electric vehicles, secondary batteries, and new energy, making the securing of a stable supply chain indispensable.

At the meeting, President Moon stated, "In a situation where COVID-19 has affected production and supply in various countries, the stability of global supply chains has emerged as a major issue. The stable supply of critical minerals is an indispensable factor for the growth of our economy through carbon neutrality. I hope that mutually beneficial cooperation between Australia, which possesses abundant critical minerals, and South Korea, which has high demand in related industries such as secondary batteries, will expand." He also evaluated the various collaborations between companies of the two countries and emphasized that government-level consultations will be strengthened.

In fact, LG Energy Solution acquired a 7.5% stake in Australia's QPM for 12 billion KRW and plans to import 7,000 tons of nickel and 700 tons of cobalt annually for the next 10 years starting from the end of 2023.

Furthermore, the government signed two MOUs with the Australian Department of Industry, Science, Energy and Resources during the Korea-Australia summit: ▲ MOU on critical minerals supply chain cooperation ▲ MOU on carbon neutrality technology implementation plan and clean hydrogen economy cooperation. These aim to lay the foundation for cooperation in responding to climate change and establishing critical mineral supply chains.

Minister of Trade, Industry and Energy Moon Seung-wook discussed ways to strengthen cooperation on carbon neutrality technology implementation plans and the clean hydrogen economy with Angus Taylor, Australian Minister for Industry, Energy and Emissions Reduction. The Australian government plans to invest 50 million AUD over 10 years for carbon neutrality technology cooperation with South Korea, and the Korean government also plans to match a corresponding amount according to domestic budget procedures. Next year, a project will be promoted with a budget of 5.4 billion KRW from the Korean government over three years (3 billion KRW for hydrogen and 2.4 billion KRW for CCUS) in the fields of hydrogen supply chains, CCUS (carbon capture, utilization, and storage), and low-carbon steel.

The two countries plan to hold the first meeting of the carbon neutrality technology operation group under the MOU early next year and simultaneously hold a business roundtable to promote cooperation between companies.

Minister Moon said, "I hope to create a synergy effect in the hydrogen economy development of both countries by strengthening cooperation between Korea, which has world-class technology and deployment experience in hydrogen utilization, and Australia, which will become a major clean hydrogen producer in the future." He added, "I also expect to strengthen cooperation and technology exchange on CCUS projects with Australia for early commercialization of CCUS technology and to carry out large-scale joint projects in the future."

This content was produced with the assistance of AI translation services.