South Korea has taken steps to diversify its supply chains by striking deals with Kazakhstan, allowing South Korean firms to explore for critical minerals in the Central Asian nation. This move comes as South Korean President Yoon Suk Yeol embarks on a state visit to Kazakhstan, following a similar trip to Turkmenistan earlier in the week.
The memorandum of understanding signed on June 12 focuses on critical minerals supply chains, enabling South Korean companies to participate in the exploration for lithium, chrome, uranium, and rare earth development in Kazakhstan. This development is particularly important for South Korea, given its status as home to major semiconductor producers and the world's fifth-largest automaker, Hyundai Motor Group, which is actively transitioning towards electrification, Reuters reports.
Stable access to critical minerals has become a strategic priority for South Korea, given its limited domestic natural resources and its status as one of the world's largest energy buyers. By securing partnerships for mineral exploration and development, South Korea aims to mitigate supply chain risks and ensure a stable supply of essential materials for its industries.
President Yoon, following his summit with Kazakh President Kassym-Jomart Tokayev in Astana, emphasized the importance of the agreement in the context of South Korea's aspirations to become a global pivotal state. He highlighted Kazakhstan's growth policy as crucial, particularly amidst complex global crises and uncertainty.
During President Yoon's visit to Turkmenistan earlier in the week, South Korea and Turkmenistan signed agreements on energy resources development, potentially amounting to around $6bn in orders. Notably, South Korean builder Hyundai Engineering inked deals with Turkmenistan's state gas and chemical companies. These agreements include cooperation on the further development of the Galkynysh gas field and the restoration of a polymer plant in Turkmenistan.
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