South Korea: Critical Minerals Profile
Major battery and semiconductor manufacturer securing supply through aggressive overseas investment strategies.
Overview
South Korea's critical mineral exposure is driven by its position as home to the world's leading battery manufacturers, semiconductor fabricators, and consumer electronics companies. Samsung SDI, LG Energy Solution, and SK Innovation collectively account for approximately a quarter of global EV battery production, creating enormous demand for lithium, cobalt, nickel, graphite, and manganese. South Korea's semiconductor industry, anchored by Samsung Electronics and SK Hynix, is similarly dependent on high-purity gallium, germanium, silicon, and various specialty metals. Recognizing the strategic vulnerability this creates, the South Korean government has pursued an aggressive program of overseas resource investment, bilateral mineral agreements, and stockpile expansion. Korean companies have invested in lithium projects in Argentina, Chile, and Australia; nickel operations in Indonesia; and cobalt and copper assets in the Democratic Republic of Congo and Zambia.
Key Minerals and Resources
South Korea's critical mineral profile is defined by its endowment of lithium, cobalt, nickel, rare earths, graphite, gallium, and indium. These minerals position the country as an important participant in supply chains spanning the energy transition, advanced manufacturing, and defense sectors.
Mining and Production
South Korea has minimal domestic mining operations for critical minerals, with the country's few remaining mines producing small quantities of zinc, lead, and industrial minerals. The country is therefore almost entirely dependent on imported minerals, which are processed and refined domestically into battery cathode materials, semiconductor substrates, and electronic components. South Korea's strength lies in its midstream processing and manufacturing capabilities rather than mining. Korean companies have established a significant global presence in overseas mineral development, with investments spanning lithium brine operations in Argentina and Chile, nickel processing in Indonesia, cobalt and copper projects in the Democratic Republic of Congo and Zambia, and rare earth supply agreements with Australia and Canada.
Policy and Regulation
South Korea's critical mineral policy has intensified through the country's Resource Security Strategy and subsequent policy updates. The government has established a Critical Minerals Supply Chain Committee to coordinate inter-agency responses to supply disruptions, and has expanded the strategic stockpile program managed by the Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR). South Korea has signed mineral supply agreements with Australia, Canada, Chile, Indonesia, the Democratic Republic of Congo, and several other countries. The government provides financial incentives including low-interest loans, insurance, and tax benefits for Korean companies investing in overseas mineral projects. Domestically, South Korea is investing in battery recycling technology and infrastructure, aiming to recover significant quantities of lithium, cobalt, and nickel from end-of-life batteries as the country's EV fleet grows.
International Partnerships
South Korea has built an expanding network of mineral supply partnerships driven by the urgent need to secure inputs for its battery and semiconductor industries. Bilateral mineral agreements have been signed with Australia, Canada, Chile, Indonesia, the Democratic Republic of Congo, and other key supplier nations. Korean companies including POSCO, Samsung, LG, and SK have made significant investments in overseas mineral assets, particularly lithium in Argentina and Chile, nickel in Indonesia, and cobalt in the DRC. South Korea is a member of the Minerals Security Partnership and coordinates with G7 and Indo-Pacific partners on supply chain resilience. The government has also established recycling partnerships with Japan and the EU to share technology and develop joint battery recycling capacity.
Supply Chain Role
South Korea is primarily a downstream consumer of critical minerals, transforming processed materials into high-value manufactured products including batteries, semiconductors, vehicles, aerospace components, and defense systems. The country's position at the end of the supply chain makes it highly dependent on the reliability and accessibility of upstream mining and midstream processing, both of which are concentrated in a small number of countries. This vulnerability has driven South Korea to pursue a multi-layered supply chain strategy combining domestic production expansion where feasible, strategic stockpiling, overseas investment in mining and processing, bilateral supply agreements with allied nations, recycling and circular economy development, and research into material substitution. The effectiveness of this strategy will determine whether South Korea can maintain its manufacturing competitiveness and technological leadership in an era of mineral supply chain geopolitics.
Related Country Profiles
Explore profiles of other nations that share regional ties or overlapping mineral endowments with South Korea.
United States
North AmericaWorld's largest consumer of critical minerals driving reshoring and supply chain diversification policies.
Canada
North AmericaKey allied supplier and emerging processing hub for critical minerals in the Western Hemisphere.
Australia
OceaniaGlobal mining powerhouse and largest lithium producer pursuing downstream processing expansion.
China
East AsiaDominant global producer and processor of most critical minerals with unmatched refining capacity.
European Union
EuropeMajor consumer pursuing strategic autonomy through the Critical Raw Materials Act and diversification targets.
United Kingdom
EuropeHistoric mining nation rebuilding critical mineral capabilities through domestic projects and global partnerships.