South Korean government moves to ensure stable lithium supply

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