South Korea and Chile Sign Five Agreements to Strengthen Lithium and Copper Supply Chains

en.Wedoany.com Reported - On July 31, South Korea and Chile formally established a strategic partnership on critical minerals. During a summit in Santiago, the two presidents, Lee Jae Myung and José Antonio Kast, signed five memoranda of understanding covering mineral resources, police cooperation, Antarctic research, maritime security, and bilateral investment between the Korea Trade-Investment Promotion Agency (KOTRA) and Chile's investment promotion agency (InvestChile).

This minerals partnership agreement elevates bilateral cooperation to the ministerial level, with both sides engaging in information exchange, technological collaboration, and expert exchanges across the full value chain of critical resources, with a particular focus on lithium and copper—the two minerals most vital to the global energy transition.

Lee Jae Myung stated that the two countries are "natural and ideal partners" in the field of critical minerals. Chile is the world's largest copper producer and holds the world's largest lithium reserves, while South Korea leads in semiconductors, batteries, and other advanced industries. The complementarity between the two sides makes them strategic players in the clean technology supply chain.

Cooperation also includes sharing information on exploration and development projects, jointly developing mineral processing technologies, and cultivating specialized talent. Chile's critical minerals drive approximately $2.1 billion in annual capital flows, a figure expected to rise as demand for batteries and semiconductor components grows.

Additionally, the two leaders agreed to restart the joint committee of the South Korea-Chile Free Trade Agreement (TLC) for the first time in a decade, aiming to update the 2004 trade pact and promote bilateral investment. This move reflects South Korea's growing interest in securing stable supplies of lithium and copper, particularly amid geopolitical competition over strategic resources in the region.