[Exclusive] Australian Mining Companies Visit Korea One After Another... Seeking Exit Strategies for Korea's IRA

'Korea-Australia Mineral Companies Roundtable' on 12th Next Month
Domestic Battery Industry Discusses Supply Chain Cooperation Measures

Workers of Australian mining company BHP
Photo by Reuters Yonhap News

Major Australian mineral companies producing and processing rare earths and lithium will visit Korea next month to discuss supply chain cooperation plans with the domestic battery industry and others. This is the first time that mineral production and demand companies from both countries will gather in one place, and the meeting is also attracting attention as an exit strategy for the issue of excluding Korean electric vehicles from subsidies under the U.S. Inflation Reduction Act (IRA).

According to related government departments on the 19th, the Ministry of Trade, Industry and Energy will hold the "Korea-Australia Mineral and Material Companies Roundtable" (tentative name) on the 12th of next month at a hotel near Gwanghwamun, Seoul. About 10 companies will participate, including Lynas, a global Australian rare earth producer currently cooperating with domestic companies; Rio Tinto, a mining and metal processing company; and Australian Mines, a lithium production specialist. On the Korean side, LG Energy Solution, Samsung SDI, SK On, the three major battery companies, as well as mid-sized material companies, are reportedly coordinating their schedules. ▷Related article on page 4

The Ministry of Trade, Industry and Energy is supporting supply chain cooperation between companies of the two countries because securing stable materials is urgently needed to foster future core industries such as semiconductors and batteries. Australia is a resource powerhouse with the world's second-largest reserves of lithium, nickel, and cobalt?three of the six key minerals designated by Korea?and the sixth-largest reserves of rare earths. The industry aims to establish a stable foundation for core material businesses through Australia while diversifying import sources away from China to minimize global raw material risks.

This is also interpreted as part of the response to the Inflation Reduction Act passed by the U.S. Congress. According to the IRA, from next year, to receive electric vehicle subsidies, the procurement of key minerals and components used in batteries must be from "North America or countries that have free trade agreements (FTA) with the U.S." Australia, as an FTA partner with the U.S., is emerging as a major alternative to meet the raw material procurement conditions required by the IRA for lithium, rare earths, and other materials.

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