Analysis: Australia-Korea bilateral relations and critical minerals

The Australia-Korea bilateral relationship faces a short term boom and a long-term loss as South Korea diversifies sources

Event or Trend: Australia and South Korea have increasingly centered hopes of improving the bilateral relationship on the supply of critical minerals essential for South Korea’s technology and manufacturing sectors.

Significance: Australia’s critical mineral resources are vital to South Korea’s industrial strategy, particularly in producing electric vehicles (EVs), semi-conductors, and batteries. Continuing the bilateral relationship on a commodity-based exchange neglects the broader opportunities available. Relying on mineral commodities risks limiting long-term cooperation, making the relationship vulnerable to market fluctuations and the emergence of alternative technologies. Understanding this risk is crucial for policymakers seeking to establish a resilient, sustainable bilateral relationship and for commercial interests in broader sectors, including finance, education, and cultural arts.

Analysis: The focus on critical minerals as the cornerstone of the Australia-South Korea partn…