Australian minerals destined for Korean electric vehicles

Australia and South Korea have signed a new deal which sees the two countries co-operate on clean energy technology and critical minerals.

It’s expected this will result in materials such as cobalt and nickel – key ingredients used in the production of batteries – being sourced from Australia for use in electric cars from Korean carmakers such as Hyundai, Kia, and SsangYong.

It solidifies a partnership agreed on at the COP26 Summit in Glasgow last month – the same event where some Australian states and territories (though not at a federal level) agreed to axe new sales of internal-combustion vehicles by 2040.

“Australia, and particularly Western Australia, has significant reserves of the critical minerals that will be essential to future technologies – not just in energy, but across a range of industries,” Prime Minister Scott Morrison said.

“More and more countries are realising the untapped opportunities we have right here for critical minerals exports, and this partnership isn’t just about developing those, but also helping secure those essential supply chains.”

Hyundai and Kia are both working on bringing a new line-up of zero-emissions vehicles to Australia, with 23 pure-electric models expected to debut by 2025.

Last week, WhichCar revealed SsangYong was bringing it’s first battery-powered car to Australia in early 2022 for evaluation.

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Australia's Pilbara region currently supplies the majority of steel used in Hyundai Motor Group vehicles.

This latest deal came as South Korean President Moon Jae-in visited Australia this week, where he met with a number of leaders from local metal mining companies.

“Commercial co-operation and investment from the Republic of Korea in Australian critical minerals will create new jobs across Australia, particularly in regional areas,” Minister for Science and Technology Melissa Price said at the announcement.

“Australia is blessed with strong reserves of critical minerals, and these precious resources will drive the new energy economy into the future.”