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Aiming at elevating its EV battery production, South Korea has inked various agreements pertaining to mineral and electric vehicle (EV) at international conferences last week.

South Korea's recent agreements align with the ambitious objectives the country set forth this year, even amidst its tepid manufacturing purchasing managers' index. During the 43rd Asean Summit in Jakarta last week, South Korea, as revealed by its trade, industry, and energy ministry (Motie), formalized a free trade agreement (FTA) with the Philippines, making it the fifth Asean nation to do so. This FTA is designed to favor South Korean automobile and car part exports by eliminating tariffs to the Philippines. The existing tariff rates, ranging from 3-30% for car exports and 5% for eco-friendly vehicles, are slated to be reduced to zero in the coming five years. Motie anticipates that, after receiving approval from South Korea's National Assembly, the FTA will become effective by the first half of 2024.

In the same summit, South Korea and Indonesia agreed upon 16 different deals. Among these were agreements to set up joint research and development centers focusing on the critical minerals supply chain, to further the development of two-wheeler EVs, integrated parking solutions, and to establish a foundation for the nuclear energy industry. Furthermore, there were five more agreements dedicated to electric power, eco-friendly equipment, green ammonia, and carbon capture and storage, although specifics regarding these were not revealed.

Separate from the Asean Summit, during the Korea-Indonesia summit discussions last week, South Korea and Indonesia also finalized two agreements about EV ecosystem cooperation and future industrial developments. As per Motie, the EV ecosystem agreement will focus on four critical areas: infrastructure expansion, training initiatives, international joint research and development projects, and governmental policies and systems.

Lastly, during the recent G20 summit in New Delhi, South Korean president Yoon Suk Yeol suggested a collaborative venture with Argentine president Alberto Fernandez to potentially explore lithium-ion battery production in Argentina, given Argentina's emerging prominence in lithium production, highlighted by its status as the fourth-largest global producer last year.

According to the article by Procurement Resource, South Korea's concerted efforts in advancing its EV battery production ambitions have been made evident through multiple strategic agreements inked at various international summits. These collaborations, ranging from trade partnerships to EV ecosystem developments and research initiatives, underscore South Korea's commitment to position itself as a front-runner in the evolving global EV landscape. With partnerships spanning across ASEAN nations to Argentina's promising lithium sector, South Korea is crafting a holistic approach to ensure its dominance in the EV battery production arena in the coming years.