According to a recent report, South Korea’s demand for essential minerals is projected to increase 19 times between 2021 and 2040, driven by the growth of the electric vehicle and wind power sectors.
According to a report from the Korea Energy Economics Institute (KEEI), South Korea’s demand for critical minerals is projected to surge 19-fold from 2021 to 2040, driven by the expansion of the electric vehicle and wind power industries. The report, as covered by Yonhap news agency, highlights that the need for lithium, nickel, manganese, and cobalt—key components of electric car batteries—will increase significantly, with respective growth rates of 15-fold, 12-fold, 19-fold, and 4-fold by 2040 compared to 2021 levels.
Furthermore, the demand for minerals essential for electric car motors, such as neodymium, praseodymium, dysprosium, and terbium, is expected to rise tenfold, in line with the anticipated 11-fold increase in electric car sales in South Korea over the same period.
The KEEI’s report also predicts an eightfold increase in new wind power installations by 2040 compared to 2022, leading to a corresponding rise in demand for related materials, with neodymium, praseodymium, dysprosium, and terbium expected to see increases of 2.6 times, 3.1 times, 21.6 times, and 2.7 times, respectively.
To enhance its competitiveness in the electric vehicle and secondary battery industries, the KEEI advises South Korea to diversify its key mineral supply chain and reduce its reliance on China. As of 2022, the country heavily depended on China for its supplies of nickel, manganese, and cobalt, as per the KEEI’s findings.
Korea’s policies on critical minerals have led to significant investments in Australia. Major steelmaker Posco has invested in lithium producer Pilbara Minerals and formed a joint venture with Pilbara to produce lithium hydroxide in Korea. Posco has also acquired a 30% stake in Ravensthorpe Nickel and Cobalt in Western Australia and invested in graphite producer Black Rock Mining. LG Chem holds a 7.5% stake in Queensland Pacific Minerals (QPM), which mines nickel and cobalt. Additionally, Australian rare earths miner Australian Strategic Minerals (ASM) produces neodymium and other rare earths in Korea, using resources from its mine in Dubbo.
