South Korea and Argentina Sign Critical Minerals MOU, Securing Latin American Supply Chain Access

The Quick Take

• South Korea's trade minister signed a landmark critical minerals cooperation MOU with Argentina during President Lee's state visit.
• The agreement is the first official government-to-government resource cooperation document between the two countries.
• Argentina holds the world's second-largest lithium reserves; the MOU targets battery material supply chain diversification.
• The deal advances Korea's strategy to reduce dependence on Chinese rare-earth and critical mineral imports.

South Korea's Ministry of Trade, Industry and Energy signed a critical minerals cooperation MOU with Argentina's Ministry of Economy during President Lee Jae-myung's state visit, marking the first formal resource-sector agreement between the two governments. The signing ceremony was attended by Trade Minister Kim Jeong-gwan and Argentine Economy Ministry officials. The MOU establishes a framework for joint exploration, extraction, and processing of lithium, copper, and other battery-relevant minerals abundant in Argentina's Puna region.

Argentina sits atop the world's second-largest lithium carbonate reserves, estimated at roughly 20 million tonnes, yet export volumes remain constrained by infrastructure gaps and policy uncertainty. For South Korea — home to battery giants LG Energy Solution, Samsung SDI, and SK On — securing upstream raw material access is existential as EV demand ramps and Chinese suppliers face geopolitical scrutiny. The MOU positions Korean firms for offtake agreements and potential joint ventures, bypassing the spot market volatility that has plagued battery supply chains since 2021.

The strategic calculus extends beyond bilateral trade. Korea is simultaneously pursuing mineral deals across Southeast Asia and Africa, building a diversified supply network independent of China's dominant position in rare earth and critical mineral processing. Argentina's lithium is particularly attractive because the brine-extraction method produces battery-grade carbonate at lower cost than hard-rock mining in Australia. Watch for downstream announcements: MOU signings typically precede concrete offtake deals within 12-18 months, especially when state visits provide political momentum.

Synthesized from 2 sources.