H. Yoo
Research expert covering South Korea
Lithium industry in South Korea - statistics & facts
While lithium has various uses, such as glassware and medicine, its critical mineral status mainly stems from its use in batteries. As some of South Korea's leading industries are tech-based, the minerals critical to producing these products have become a point of interest. Lithium-ion batteries are still a gold standard when it comes to battery production. As such, securing a stable supply of lithium has become paramount to the success of South Korea's largest companies, such as Samsung and LG. Despite the recent slowdown in the electric vehicle market, long-term demand for lithium is likely to continue rising with its ubiquitous nature in other growing industries, mainly green energy.
Lithium demand and trade in South Korea
Known as the lithium triangle, Argentina, Chile, and Bolivia hold around half of the world's lithium reserves. Although lithium had previously not been considered a low-supply risk, the almost exponential rise in demand has had countries working to secure trade partners. The import value of lithium compounds into South Korea increased by over 10 times from 2020 to 2023. Specifically, imports of lithium hydroxide and lithium carbonate increased significantly during this time. POSCO Holdings acquired mining rights to a salt lake in Argentina to supply lithium carbonate in 2018, yet the country only accounts for one percent of the lithium import share to South Korea. Currently, most imported lithium is sourced from China and nearly 40 percent comes from Chile.Developments in lithium sourcing and processing
While such trade partners are essential, new developments in the sourcing and processing of lithium have strengthened South Korea's position in the global lithium supply chain. Technologies such as artificial intelligence have made mining far more efficient, making it possible to develop mines that may not have previously been possible. In 2024, deposits of lithium were discovered in the provinces of North Gyeongsang and North Chungcheong. That same year, POSCO developed and applied its own technology to extract lithium from raw materials and commercially produce lithium hydroxide, the first such case in South Korea.Outlook for South Korea’s lithium industry
South Korea seeks to reduce its greenhouse gas emissions by 40 percent from 2018 figures by 2030. Because of lithium's core role in most energy storage systems, investments toward sourcing and processing lithium will likely continue as a part of South Korea's strategy for reaching its emission reduction targets. Further, improved methods for recycling lithium and similar critical minerals are likely to be developed as the demand for them grows. Given such expected demand, the lithium industry in South Korea is forecast to grow in the coming years.
