The South Korean Ministry of Trade reported initiatives to strengthen cooperation with China in the areas of vital mineral supply. The move aims to ensure a stable supply of rare earth elements, which are essential for diverse technologies such as semiconductors and electric car batteries.
The announcement comes on the heels of South Korea joining the US-led biominerals trading bloc, which seeks to reduce over-reliance on China for strategic materials. The ministry stated that it would establish a “hotline” and a “joint committee” with the Chinese authorities to facilitate the import of minerals more quickly and reliably.
In addition, Seoul announced its designation of “17 critical minerals” as essential for national security, and will tighten monitoring and analysis on supplies to avoid any sudden shortages. It will also cooperate with other countries, including the United States, Vietnam and Laos, to diversify import sources. The government will allocate “250 billion won ($172.35 million)” to support South Korean companies in developing mines abroad.
The move is part of South Korea’s efforts to strike a balance between participating in the Washington-led international trade bloc and maintaining stable relations with China, taking into account Beijing’s dominance over rare earth minerals and its influence on global supply chains.
Cho Hyun, South Korean Foreign Minister, said during a meeting in Washington that Seoul will work to strengthen coordination with partners and encourage investment in projects aimed at securing supply chains.
