South Korea seeks closer China cooperation to secure critical mineral supply chains
South Korea will also cooperate with other countries, including the United States, Vietnam and Laos, to diversify its sourcing of critical minerals, Seoul's trade ministry said.
Workers transport soil containing rare earth elements for export at a port in Lianyungang, Jiangsu province, China on Oct 31, 2010. (File photo: Reuters)
SEOUL: South Korea is seeking closer cooperation with China on critical mineral supply chains, its trade ministry said on Thursday (Feb 5), as Seoul unveiled plans to secure stable supplies of rare earths needed for cutting-edge technologies.
The ministry said in a statement that it would establish a hotline and joint committee with Chinese authorities to help South Korean companies import Chinese minerals more quickly and reliably.
South Korea, which is home to leading semiconductor, electric car battery and petrochemical companies, lacks a full supply chain for rare earths, the ministry said.
Authorities will designate 17 critical minerals needed for national security and tighten monitoring and analysis on their supplies in order to prevent an unexpected shortage, it said.
To diversify sourcing, Seoul will also cooperate with other countries, including the United States, Vietnam and Laos, the ministry said.
The government plans to allocate 250 billion won (US$172.35 million) of state funds to support local companies developing overseas mines.
In October, Beijing expanded control over its rare earths, including extra scrutiny for semiconductor users. At the time, South Korea's trade ministry said China's monopoly on rare earths increased instability in global supply chains.
On Wednesday, US Interior Secretary Doug Burgum said multiple countries, including South Korea and Japan, had joined a club on trading critical minerals to reduce the reliance on China.
