South Korea has begun constructing lithium inventories to secure supplies of the vital minerals required by the country’s battery and automotive industries.
According to another individual familiar with the situation, the government has now set aside 233.1 billion won ($171 million) to acquire essential minerals for the development of the country’s cutting-edge technology. It intends to spend the majority of it on increasing its lithium stocks for electric-car batteries in response to potential shortages caused by rising geopolitical tensions, according to the person.
According to the source, the money, representing a 526% increase over the previous year, is slated to be deployed in 2024.
South Korea’s stockpiling strategy comes as lithium prices have struggled to recover from a severe drop last year. Authorities are also working to ensure that domestic enterprises can remain competitive in the US by meeting the standards of the Inflation Reduction Act.
Lithium prices rose to a new high in late 2022 as the worldwide push toward an electrified transportation fleet boosted demand, while supplies battled to stay up. Car and battery manufacturers tried to obtain offtake or expansion agreements to lock in lithium.
South Korea’s commerce ministry announced in March that it will invest 241.7 billion won over three years to create warehouses for essential minerals such as lithium, gallium, and rare earth.
