Supply Risk of Minerals

Revised Outline for Base Research with Focus on South Korea

Introduction

• Brief Overview: Importance of each mineral globally and specifically to South Korea.
• Relevance to South Korean Industries: Key sectors in South Korea dependent on each mineral (e.g., electronics, automotive, defense).

1. Lithium (리튬)

a. Overview and Importance

• Applications: Essential for rechargeable batteries in electronics and EVs.
• South Korean Context: Key for companies like Samsung SDI, LG Chem, and Hyundai.

b. Global Supply Chain Overview

• Major Producers: Australia, Chile, China.
• Key Companies: Albemarle, SQM, Tianqi Lithium.

c. Demand Drivers

• Global: EV market, energy storage systems, electronics.
• South Korea: EV production, battery manufacturing for electronics.

d. Supply Chain Risks

• Geopolitical Risks: Political instability in major producing countries.
• Environmental Risks: High water usage and contamination from mining.
• Economic Risks: Price volatility and dependency on imports.

e. Recent Trends and Events

• Global Trends: Price increases due to EV demand.
• Specific to South Korea: Increased investment in lithium recycling and partnerships with producing countries.

f. Mitigation Strategies

• Diversifying Sources: Investing in mining projects abroad.
• Recycling Initiatives: Enhancing lithium recycling technologies.
• Strategic Reserves: Building reserves to buffer against supply disruptions.

g. Conclusion

• Summary: Importance of lithium and need for robust supply chain management for South Korea.

2. Cobalt (코발트)

a. Overview and Importance

• Applications: Batteries, aerospace, industrial applications.
• South Korean Context: Key for battery manufacturers and high-tech industries.

b. Global Supply Chain Overview

• Major Producers: DRC, Russia, Australia.
• Key Companies: Glencore, China Molybdenum, ERG.

c. Demand Drivers

• Global: Battery production, aerospace.
• South Korea: High-capacity battery production, high-tech manufacturing.

d. Supply Chain Risks

• Geopolitical Risks: Instability in the DRC.
• Ethical Risks: Child labor and unethical mining practices.
• Economic Risks: Price volatility and supply concentration.

e. Recent Trends and Events

• Global Trends: Ethical sourcing initiatives, investment in cobalt-free batteries.
• Specific to South Korea: Efforts to secure ethical supply chains and diversify sources.

f. Mitigation Strategies

• Ethical Sourcing: Ensuring cobalt is sourced responsibly.
• Diversifying Supply: Seeking alternative suppliers and recycling.
• Technological Innovation: Research into cobalt-free batteries.

g. Conclusion

• Summary: Cobalt’s critical role and the need for ethical and stable supply chains for South Korea.

3. Nickel (니켈)

a. Overview and Importance

• Applications: Stainless steel, batteries, alloys.
• South Korean Context: Important for steel production and battery manufacturing.

b. Global Supply Chain Overview

• Major Producers: Indonesia, Philippines, Russia.
• Key Companies: Vale, Norilsk Nickel, BHP.

c. Demand Drivers

• Global: Steel and EV battery production.
• South Korea: Steel industry, EV battery manufacturing.

d. Supply Chain Risks

• Geopolitical Risks: Dependency on specific regions.
• Environmental Risks: Significant environmental impact from mining.
• Economic Risks: Market volatility.

e. Recent Trends and Events

• Global Trends: Increased demand from EV market.
• Specific to South Korea: Investment in sustainable sourcing and recycling.

f. Mitigation Strategies

• Sustainable Sourcing: Investing in environmentally friendly mining.
• Recycling: Enhancing nickel recycling processes.
• Strategic Partnerships: Long-term contracts with suppliers.

g. Conclusion

• Summary: Nickel’s importance to South Korean industries and strategies for mitigating supply risks.

4. Manganese (망간)

a. Overview and Importance

• Applications: Steel production, batteries, chemical catalysts.
• South Korean Context: Key for steel manufacturing and battery technology.

b. Global Supply Chain Overview

• Major Producers: South Africa, Australia, China.
• Key Companies: South32, Eramet, Assmang.

c. Demand Drivers

• Global: Steel and battery industries.
• South Korea: Steel production, battery manufacturing.

d. Supply Chain Risks

• Geopolitical Risks: Instability in producing regions.
• Environmental Risks: Environmental impact of mining and refining.
• Economic Risks: Price volatility linked to steel market.

e. Recent Trends and Events

• Global Trends: Growing demand from battery sector.
• Specific to South Korea: Efforts to secure stable supply and enhance recycling.

f. Mitigation Strategies

• Diversifying Supply: Seeking new sources and enhancing recycling.
• Sustainable Practices: Investing in environmentally friendly mining.
• Strategic Reserves: Building reserves to cushion against disruptions.

g. Conclusion

• Summary: Manganese’s role in South Korean industries and strategies for securing supply.

5. Tungsten (텅스텐)

a. Overview and Importance

• Applications: Hard metals, superalloys, high-temperature applications.
• South Korean Context: Important for industrial machinery, aerospace, and military.

b. Global Supply Chain Overview

• Major Producers: China, Russia, Vietnam.
• Key Companies: China Minmetals, Wolfram Company, Chongyi Zhangyuan Tungsten.

c. Demand Drivers

• Global: Industrial applications, aerospace, military.
• South Korea: High-tech manufacturing, defense.

d. Supply Chain Risks

• Geopolitical Risks: Dependency on China and other specific countries.
• Environmental Risks: Significant environmental impacts of mining.
• Economic Risks: Price volatility due to concentrated supply.

e. Recent Trends and Events

• Global Trends: Efforts to diversify supply and reduce dependency on China.
• Specific to South Korea: Investments in domestic production and recycling.

f. Mitigation Strategies

• Diversifying Sources: Seeking new suppliers and investing in recycling.
• Sustainable Practices: Developing environmentally friendly mining techniques.
• Strategic Reserves: Building reserves to manage supply disruptions.

g. Conclusion

• Summary: Tungsten’s critical applications and the need for secure supply chains for South Korea.

Conclusion

• Summary: Importance of each mineral to South Korea’s economy and industries.
• Recommendations: Strategies for mitigating supply chain risks and ensuring stable supplies of critical minerals.

Next Steps

1. Detailed Data Collection: Gather specific data on supply chain disruptions, geopolitical events, and environmental impacts for each mineral specific to South Korea.
2. Trend Analysis: Perform detailed time-series analysis on price data and supply risks.
3. Risk Mitigation Strategies: Develop comprehensive strategies for mitigating supply chain risks, including diversifying sources, enhancing recycling, and developing alternative technologies.
4. Predictive Modeling: Use machine learning algorithms to predict future supply chain disruptions and price changes based on historical data.

By focusing on South Korea, this research can provide valuable insights and recommendations to the South Korean government for managing and securing the supply of critical minerals.