South Korea Strengthens Ties with China for Critical Mineral Supply

South Korea is enhancing cooperation with China to stabilize its critical mineral supplies essential for advanced technologies. The nation aims to diversify its sourcing to reduce dependency on China and recently joined a U.S.-led trade bloc for critical minerals, prioritizing supply chain stability.

South Korea is bolstering its ties with China in a bid to secure critical mineral supplies crucial for its technological advancements. The trade ministry, on Thursday, announced plans to establish a hotline and joint committee to expedite and stabilize imports from China, a crucial step for its semiconductor and battery industries.

In response to China's expanding control over rare earths, and the associated risks of a supply chain monopoly, South Korea declared its intention to diversify its sources. Efforts will include cooperation with countries like the United States, Vietnam, and Laos, supported by a state fund of 250 billion won aimed at overseas mining ventures.

Additionally, South Korea's role in the U.S.-established Forum on Resource Geostrategic Engagement (FORGE) highlights its strategic diplomacy. South Korea, chairing the bloc, will enhance partnerships and investments to secure supply chains, striving for geopolitical leverage protection and manufacturing stability.

(With inputs from agencies.)