"Australia is a Key Supplier of Critical Minerals... South Korea Must Collaborate"

KOTRA Publishes Report on 'Trends in Australia's Critical Minerals Supply Chain and Cooperation Directions with Korea'

[Asia Economy Reporter Han Yeju] There is a claim that 'Australia' should be noted as a stable core mineral supply source in the future.

KOTRA announced on the 6th that it has published a report titled 'Trends in Australia's Critical Minerals Supply Chain and Directions for Cooperation with Korea.'

This report was planned jointly by KOTRA Sydney and Melbourne trade offices to examine the supply chain trends of Australia's six key minerals for Korea (lithium, nickel, cobalt, graphite, rare earths, and platinum group metals) and to introduce opportunities for cooperation in critical minerals with Australia to Korean companies.

As carbon neutrality emerges as a global challenge, the global demand for critical minerals for low-carbon energy transition is on the rise. This is because critical minerals such as lithium and rare earths are essential for the spread of renewable energy and the production of hydrogen and electric vehicles. Korea also needs to prepare measures to stabilize the supply chain for the smooth procurement of the six key raw minerals necessary for carbon neutrality.

According to the US Geological Survey, Australia is a global critical mineral holding country, ranking 2nd in the world in reserves of lithium, nickel, and cobalt?representative minerals needed for secondary battery manufacturing?and 6th in rare earth reserves (as of 2021). In particular, Australia is the world's largest lithium producer, accounting for 55% of global production. Furthermore, Australia is Korea's top mineral resource supplier, accounting for 42% of general mineral imports in 2021, with total mineral import value reaching $18.77577 billion.

Known as a global resource-rich country, the Australian government announced the '2022 Critical Minerals Strategy' in March this year, selecting a total of 26 critical mineral items. To leap forward as a global critical minerals powerhouse by 2030, Australia plans to promote projects worth AUD 200 million (approximately KRW 1.845 trillion) through critical minerals promotion initiatives, establish a national critical minerals research and development (R&D) center, attract investment in related industries, expand infrastructure, and strengthen international partnerships.

This report provides an in-depth introduction to Australia's critical mineral development directions, including ▲ the Australian government's critical minerals strategy ▲ supply chain trends of Korea's six key minerals in Australia ▲ regional critical mineral projects. It also contains information on major exhibitions of Australia's critical mineral industry and 167 key local companies.

Additionally, KOTRA analyzed Australia's external supply chain cooperation trends through on-site interviews with the Australian government and key project stakeholders, and proposed Korea-Australia critical mineral cooperation measures such as ▲ responding to supply chain crises through cooperation system establishment ▲ expanding cooperation and dialogue channels on critical minerals ▲ establishing a national resource security control tower.

Jung Wooyoung, head of KOTRA's Innovation Growth Headquarters, said, "Resource-rich Australia is striving to become a global critical minerals powerhouse through policies to strengthen industrial competitiveness," adding, "We will contribute to supply chain stabilization through resource cooperation between Korea and Australia and promote various projects to respond to climate change."