While many international critical-minerals partnerships remain at the level of frameworks and dialogues, Australia and South Korea have advanced to tangible action. The partnership’s strength is the volume of minerals processed, refined and integrated into global supply chains.

This coordinated industrial engagement reflects a shared effort to reduce dependence on China for critical minerals. The partnership offers a model of supply-chain integration, public finance alignment and advanced manufacturing—moving beyond raw extraction to strengthen long-term resilience across the battery and semiconductor sectors.

In July 2023, China’s decision to restrict ^[1] exports of gallium and germanium—which are key to chipmaking and electric vehicles—intensified supply-chain risks for South Korea. The country is the world’s second-largest ^[2] producer of semiconductors and accounts for more than 60 percent of the global memory semiconductor market. Its industrial competitiveness therefore increasingly hinges on stable and diversified access to critical minerals. In fact, South Korea’s battery industry remains heavily dependent ^[3] on China for key inputs, sourcing about 80 percent of its lithium hydroxide and more than 90 percent of its precursor cathode materials and synthetic graphite from Chinese suppliers.

Australia and South Korea have built a robust bilateral framework for collaboration on critical minerals under the two countries’ 2021 comprehensive strategic partnership ^[4]. Australia and South Korea are also members of multilateral platforms such as the Minerals Security Partnership (MSP), led by the United States.

Public finance institutions Export Finance Australia and the Export-Import Bank of Korea signed ^[5] a memorandum of understanding in September 2023 to strengthen cooperation and co-financing in key sectors including critical minerals, renewable energy and supply-chain resilience.

In terms of lithium procurement, Australia’s Wesfarmers Chemicals, Energy and Fertilisers signed ^[6] an agreement in February 2024 to supply up to 85,000 tonnes of lithium concentrate to South Korean battery company LG Energy Solution. Similarly, in a joint-venture initiative, Australian mining company Pilbara Minerals and South Korean steel and materials company POSCO announced ^[7] the completion of a lithium hydroxide facility in South Korea, which will process spodumene concentrate supplied from Pilbara’s Western Australian operations.

In July, Australian Strategic Materials secured ^[8] its first commercial sale of heavy rare earth metals. The buyer was a subsidiary of Canadian mining company Neo Performance Materials.  This sale included terbium and dysprosium produced at its Australian Strategic Materials’ Korean Metals Plant in Cheongju.

In November 2023, South Korea and other members of the US-led Indo-Pacific Economic Framework launched ^[9] a critical minerals dialogue to build a stable, transparent and sustainable supply network among partner countries. Domestically, then president Yoon Suk-yeol pledged governmental backing for the rechargeable battery industry to maintain competitiveness in the global electric-vehicle market.

In February of that year, the Ministry of Trade, Industry and Energy announced a strategy ^[10] to secure a stable supply of critical minerals such as lithium, nickel and rare earth materials. The South Korean government has designated 33 minerals as ‘critical minerals’. Of those, 10 are used for semiconductors and electric-vehicle batteries. The ministry also planned to strengthen overseas partnerships, digital supply monitoring and financial support for resource development. The government also aimed to cut dependence on China’s import of critical minerals from 80 to 50 percent by 2030.

South Korea’s Special Act on National Resources Security ^[11] entered into effect in February. It introduced an early warning system, mandated stockpiling of key resources and empowered the government to take emergency measures such as price controls and supply allocation during crises. South Korea is also seeking to grow its critical-minerals recycling ^[12] industry, with the aim of securing a 20 percent recycling rate of critical minerals by 2030, according to the Ministry of Trade, Industry and Energy.

In June, Australian Prime Minister Anthony Albanese and South Korean President Lee Jae-myung reaffirmed ^[13] commitments to deepen collaboration across defence, arms manufacturing and critical minerals. At the 2025 G7 Summit in Canada, Lee also underscored South Korea’s leadership as incumbent chair ^[14] of the MSP, reaffirming Seoul’s role in diversifying global mineral supply chains.

Analysts have suggested ^[15] that South Korea should leverage its current leadership of the MSP to integrate economic security considerations, such as semiconductor and high-tech supply chain resilience, into project selection and investment opportunities.

Australia, South Korea and Tanzania jointly marked the groundbreaking of the Mahenge ^[16] graphite project on 9 October, led by Australia’s Black Rock Mining with participation from POSCO International and the Tanzanian government. Recognised as a flagship MSP project, the initiative aims to strengthen global graphite supply-chain resilience while supporting local development in Tanzania through equitable, sustainable resources cooperation. South Korea’s MSP leadership position drives inclusive, diversified project pipelines. However, sustaining this role will depend on strong financing; political risk management; and compliance with environmental, social and governance standards.

Beyond MSP, South Korea’s partnership with the Association of Southeast Asian Nations offers opportunities to strengthen regional critical minerals cooperation. In July 2024, they launched ^[17] a US$5.6 million project on critical minerals management, led by the Korea Institute of Geoscience and Mineral Resources, with capacity-building programs planned through 2028. South Korea has also pursued bilateral ties with countries such as Vietnam to diversify rare earths supply and reduce dependence on China. However, structural challenges such as limited processing capacity, weak regulation and outdated refining technology continue to hinder Southeast Asia’s ability to attract investment and build resilient, value-added supply chains.

As global competition for critical minerals accelerates, the Australia–South Korea partnership stands out for its ability to convert shared strategic intent into industrial cooperation. With active projects spanning mining, refining and advanced manufacturing, the partnership is already reshaping supply chain dynamics in the Indo-Pacific. Looking ahead, its long-term effect will depend on sustained investment, deeper alignment across policy and industry and the expansion of joint initiatives into new markets and regions.