South Korea advances critical minerals strategy

South Korea is accelerating efforts to secure critical minerals supply through an expanding global network of partnerships, as the country remains almost entirely dependent on imports. But the next phase of this strategy — and where it could become a blueprint for others — lies in how these agreements are implemented.

In early June, Seoul expanded its cooperation with Canada through plans for joint stockpiling of critical minerals. The same week, it launched a strategic dialogue with Mongolia, a country that hosts significant reserves of heavy rare earths. And days later, South Korea and the European Union agreed to deepen cooperation on supply chain resilience and economic security, while talks with the UK focused on innovation and closing governance gaps in metals markets. Seoul has also hosted the Korea–Africa Foreign Ministers’ meeting, targeting resource-rich jurisdictions across the African continent.

Taken together, these moves showcase deliberate efforts to build a globally diversified supply network, spanning both established and frontier mining regions.

Seoul's goal is to secure reliable partners and de-risk its supply chains. The country imports more than 95pc of its critical minerals and remains heavily dependent on China for processed inputs. In batteries, imports account for roughly 70pc of key materials, while advanced semiconductor production also draws on significant amounts of externally processed metals like gallium and germanium.

These vulnerabilities are acute given South Korea’s role as a global leader in semiconductors and advanced batteries.

Domestic recycling is expanding but cannot replace primary supply, so access to raw materials remains essential. As a result, Korea’s strategy is moving upstream into mining jurisdictions such as Zimbabwe, Africa’s largest lithium producer, while maintaining its industrial strength downstream. For Korean battery makers like Samsung and LG, securing lithium and other battery materials is crucial.

This dense network of partnerships across regions and stages of the value chain could serve as a template for other import-dependent economies. Notably, Seoul’s approach does not seek full decoupling from China. Instead, it reflects a diplomatic shift towards reducing concentration risk without aiming for outright substitution.

This delicate balance is already visible in some markets. Korea's germanium imports, for example, have diversified rapidly following China’s 2023 export controls, with Canada emerging as the dominant supplier. Gallium has followed a similar trajectory, although both markets remain volatile and highly concentrated.

In other raw materials, particularly rare earths, the strategy differs. Seoul is working to streamline continued access to Chinese supply, including through mechanisms such as dedicated hotlines and joint committees to facilitate faster and more reliable imports.

Integrated approach: From MoUs to mines

Another part of Korea’s strategy is signing global deals that cover midstream processing, financing structures and offtake agreements, reflecting a more integrated approach to supply chain security.

Korean companies are acquiring assets and locking in supply directly. POSCO has taken full ownership of lithium projects in Argentina while building processing plants on site, creating an integrated upstream-to-midstream chain. In Indonesia, Korean firms are investing in nickel and cobalt projects tied to battery production, embedding themselves deeper into the EV supply chain.

These efforts go beyond many government-level agreements, which often remain non-binding and lack clear pathways to execution. According to consultancy Plusmining, more than 50 bilateral critical minerals agreements have been signed globally over the past 18 months, but more than half remain non-binding — signalling intent, but not necessarily action.

Research shows that coordinated financing between countries could work better. A clear example is the Minerals Security Partnership Finance Network (MSPFN) — part of a broader US-led initiative — which connects companies, export credit agencies and development finance institutions to co-finance large-scale mining infrastructure projects.

For South Korean firms, this type of platform provides access to Western-backed financing while scaling investment globally.

Seoul also currently chairs the Forum on Resource Geo-strategic Engagement (FORGE), a US-led effort to build resilient, diversified critical minerals supply chains and reduce reliance on dominant producers.

Ultimately, access to raw materials is now a strategic necessity for all industrial economies. Supply chains are complex, capital-intensive and increasingly geopolitical. In this landscape, multilateral coordination and the ability to turn agreements into investable projects will determine who succeeds.

Argus Media and KOMIR will host a joint forum in Seoul on 26 June, focusing on supply chain stability and international cooperation in critical minerals. You can register your interest here.