The cracks are appearing in Korea. Their preference for easy Chinese supply has come to an end.
In order to reduce dependency on China, we have no choice but to increase cooperation with the U.S.-led Indo-Pacific Economic Framework, which consists of 14 member nations, for mineral supply chains. We should also join hands with Japan, which is ahead of the game in rare earths,” added Sagong Mok, supply chain management analyst at the Korea Institute for Industrial Economics and Trade. See article
Korea's dependence on China has been problematic for their supply chains including Europe and the US. Despite repeated calls to curb its reliance on China due to uncertainties surrounding the Washington-Beijing row, Korea has been taking the easy way out but now the game is up and they have no choice but to diversify.
The amount sourced from China for 13 goods, including lithium, graphite and tungsten, proportionally increased in 2022 compared to 2017. In particular, Korea’s import of graphite from China rose from 80 percent of its total imports in 2017 to 94 percent last year.
Securing key minerals has recently intensified. Now that the Albanese Government can focus back on the economy, look out for strategic incentives in the coming week or so.
Renascor is cashed-up with shovel in hand ready to respond.
