On 20 May, Bloomberg reported South Korea's active efforts to establish lithium inventories. According to sources, South Korea has already purchased lithium carbonate from Chile through the state-owned entity Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR) which aims to promote a stable supply of critical minerals for the country. Additionally, in response to potential battery metal shortages, South Korea has said to allocate 233.1 billion Korean won (approximately US$171 million) to stockpile lithium and other critical metals, marking a 526% increase from last year's budget.
Also on 20 May, the Australian Foreign Investment Review Board (FIRB) issued a no-objection notification for KOMIR's acquisition of a 30% stake in the Lefroy Lithium Project located in Western Australia. According to Maximus Resources, the company that owns the project, KOMIR plans to invest A$4.5 million (approximately $3 million) to establish a joint venture for lithium exploration.
Furthermore, Maximus has signed a non-binding Memorandum of Understanding (MoU) with LG, granting LG the option to acquire a 30% stake in the joint venture held by KOMIR. If LG chooses to acquire shares in the project, it will also have the right to negotiate the purchase of 70% of the lithium output from the project. Drilling for the project commenced on May 22.
Author: Hongqiu Su | Battery Metals Analyst Associate | London Office, Shanghai Metals Market
Email: lilysu@smm.cn
