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(Ecofin Agency) – After China and Japan in Asia, South Korea is now organizing its first summit with Africa. Among the key topics that will bring together Seoul and around fifty African countries this week, the issue of critical minerals will figure prominently.
From June 4 to 5, 2024, the South Korean government will hold its first African summit in Seoul and Ilsan. According to Kim Tae-hyo, Deputy National Security Advisor to President Yoon Suk Yeol, Africa is a “critical partner” for South Korea’s continued industrial advances. With 30% of the world’s reserves of critical minerals, including cobalt, tin, copper and graphite, the continent is well-placed to supply semiconductor producers and the world’s fifth-largest automaker, Hyundai.
“Africa is a critical partner for South Korea’s continued industrial advances,” said Kim Tae-hyo, Deputy National Security Advisor to President Yoon Suk Yeol.
In recent years, Korean companies have forged links with several mining companies active in Africa. Tanzania is one of the countries that has benefited most from this growth in South Korean investment in the African mining sector.
Currently Africa’s third-largest graphite producer, and aiming to supply at least 10% of the world’s supply by 2030, Tanzania can supply South Korea’s electric vehicle battery industry. The giant POSCO, which is aiming to quadruple its production of battery anodes to 320,000 tonnes by 2030, has signed several supply agreements for graphite projects that are due to go into production soon.
Other African graphite producers – Uganda, Mozambique, and Madagascar – are also positioning themselves to take advantage of South Korea’s interest in this product. In October 2023, the South Korean Ministry of Trade announced Seoul’s intention to turn to several African countries for graphite supplies, following China’s decision to impose further restrictions on its exports.
Important Rivals
However, South Korea is not the only developed country with a growing interest in Africa’s critical minerals. As part of its expansion on the continent, Seoul will have to contend with the ambitions of the United States, the European Union (EU), and Japan, who are challenging China’s leadership in critical metals on the continent. The Middle Kingdom has made its mark with massive investments in Africa in recent years.
Local processing of African minerals is gradually becoming a priority for many producers, and partners committed to supporting initiatives in this direction are more likely to prevail in this competitive environment. The South Korea-Africa summit is therefore an opportunity for Seoul to take its first steps in this direction, with the announced signing of several cooperation agreements.
Emiliano Tossou
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