South Korea has secured agreements with Kazakhstan to enable its companies to explore for critical minerals in the Central Asian nation. This move is part of South Korea’s strategy to diversify its supply chains, especially important for its major chip producers and leading automaker Hyundai.
South Korean President Yoon Suk Yeol is currently on a state visit to Kazakhstan, following a visit to Turkmenistan earlier this week, and is scheduled to visit Uzbekistan next.
On Wednesday, a memorandum of understanding was signed regarding critical minerals supply chains. This agreement allows South Korean companies to participate in the exploration and development of lithium, chrome, uranium, and rare earth minerals in Kazakhstan, according to the industry ministry.
South Korea, which hosts major semiconductor producers and Hyundai Motor Group (the world’s fifth-largest automaker), is making significant strides toward electrification. Ensuring a stable supply of critical minerals is crucial for the country, given its lack of natural resources and status as one of the world’s largest energy buyers.
During a summit with Kazakh President Kassym-Jomart Tokayev in Astana, Yoon emphasized the importance of the deal, stating it aligns with South Korea’s goal of becoming a global pivotal state. He noted Kazakhstan’s growth policy is increasingly significant amid complex global crises and uncertainties.
Earlier this week, South Korea and Turkmenistan signed agreements on energy resources development, potentially leading to around $6 billion in orders. These agreements include South Korean company Hyundai Engineering collaborating with Turkmenistan’s state gas and chemical companies on the further development of the Galkynysh gas field and the restoration of a polymer plant, as announced by Hyundai Engineering on Tuesday.
Additionally, South Korea recently hosted its first summit with leaders from 48 African nations, aiming to explore the continent’s mineral resources and market potential for exports.
