South Korea woos African nations over critical mineral supplies
High-tech economy aims to cut reliance on China for lithium and graphite
SEOUL -- South Korea is wooing African countries in a bid to secure minerals essential to producing batteries, electric vehicles and smartphones, as the high-tech economy tries to curb its heavy reliance on China for lithium, graphite and rare earths.
President Yoon Suk Yeol is hosting South Korea's first summit with African countries, inviting leaders and delegations from 48 members of the African Union. They agreed at the two-day Korea-Africa Summit that ended on Wednesday to launch the Korea-Africa Critical Minerals Dialogue as an institutional foundation for enhancing cooperation.
"Recognizing [South] Korea's leadership in advanced industries and Africa's importance as a globally significant region for critical mineral reserves, we emphasize the need to expand mutually beneficial cooperation and knowledge sharing, including at the mini-lateral level, to promote the development of industries related to critical minerals," a joint declaration said on Tuesday.
South Korea's Ministry of Trade, Industry and Energy classified 10 minerals, including lithium, nickel, cobalt, manganese and graphite, as being of "critical" importance last year, with the aim of reducing reliance on any one country to less than 50% by 2030. South Korea imported 64% of its lithium and 94% of its graphite from China in 2022, according to government data.
The East Asian country's economy is led by Samsung Electronics and other technology companies, with battery makers becoming increasingly important given the global shift to electric vehicles. Manufacturers dependent on minerals are keen to diversify supplies amid rising geopolitical tensions between the U.S. and China.
African countries suggested they can help.
"When I was looking at the list of the 10 critical raw materials that are identified by [South] Korea, I think Namibia is able to provide all except two," Nangula Uaandja, chair and CEO at the Namibia Investment Promotion and Development Board, said at the 2024 Korea-Africa Energy Investment Forum on Tuesday in Seoul on the sidelines of the summit. "So whether it is lithium, whether it is manganese, whether it is graphite and all of the five identified rare earth elements, Namibia has got those."
Uaandja urged South Korea to participate in mineral exploration with the southern African country, saying it is already in talks with the European Union and Japan.
Ian Haddon, CEO of South Africa's MSA Group, a mining industry consultancy, said South Korea's government is taking the issue seriously.
"The South Korean government ... [has] taken very important steps including collaboration with domestic battery makers, the expansion of diversification of import sources, increasing stockpiles of certain critical minerals, investment incentives in particular tax credits for investment into overseas resource development, and provision of loans, guarantees and insurance to Korean companies," Haddon said in a speech to the energy forum.
Other sub-events were also held in tandem with the summit, including on start-ups, infrastructure, tourism and encouraging businesses to connect.
Despite the summit being the first of its kind, South Korea has long cultivated relations with African countries and even competed with rival North Korea for their cooperation and support.
South Korea said that a total of 25 leaders of African countries attended the event, held at an exhibition center in the Seoul suburb of Goyang.
Apart from the main summit, South Korean President Yoon Suk Yeol also held individual meetings with heads of African nations including Kenya, Madagascar, Liberia and Ghana. They agreed to cooperate in a wide range of sectors, from infrastructure and agriculture to minerals and defense, according to Yoon's office.
South Korea's Industry Ministry said on Wednesday that it signed MOUs with Tanzania and Madagascar to cooperate in critical minerals supply.
Yoon said that the country will expand its official development aid to the continent to $10 billion by 2030 as well as offer $14 billion of financing to South Korean exporters doing business in the region.