South Korea has started building its lithium inventories to secure supplies of the critical mineral that’s crucial for its battery and auto manufacturing industries.
The nation has already bought some lithium carbonate, a refined form of the battery material used in EVs, this year from Chile via state-controlled Korea Mine Rehabilitation and Mineral Resources Corp. (KOMIR), said two people familiar with the matter, who weren’t authorized to speak publicly.
The government has now allocated 233.1 billion won ($171 million) to secure critical minerals for development of the nation’s cutting-edge technologies, according to another person with knowledge of the matter. It plans to spend most of it on building its lithium reserves for electric-car batteries in an effort to counter potential shortages amid heightened geopolitical tensions, the person said.
The budget, which marks a 526% jump from the last year’s, is expected to be deployed during 2024, according to the person.
KOMIR declined to comment when reached by phone.
South Korea’s stockpiling strategy comes at a time when lithium prices have struggled to rebound from a sharp plunge last year. Authorities are also striving to ensure domestic companies can maintain competitiveness in the US by meeting the requirements of the Inflation Reduction Act.