South Korea is intensifying efforts to secure its nickel supply chain amid global shifts in critical mineral sourcing for electric vehicles and secondary batteries. With China currently supplying nearly all of Korea’s imported nickel oxides and hydroxides—and over two-thirds of nickel sulfate—Seoul is seeking to diversify its sources, particularly in Southeast Asia.
In early March, the Federation of Korean Industries, the Philippine Chamber of Commerce and Industry, and KOTRA will convene the Korea-Philippines Business Forum in Manila to discuss critical mineral cooperation. The Philippines, holding the world’s sixth-largest nickel reserves and ranking among the top two producers globally, recently joined the U.S.-led critical minerals partnership and launched a “Nickel Corridor” with Indonesia to enhance processing and refining coordination.
Market research firm SNE Research projects nickel demand to grow more than 20% annually over the next decade, driven by the electric vehicle and energy storage markets. In high-nickel cathode chemistries, nickel can account for 60% to 80% of the battery composition, underscoring the metal’s strategic importance.
South Korea has made critical mineral security a national priority. Seoul currently chairs the Minerals Security Partnership—designed to reduce reliance on China-dominated supply chains—through June and is evaluating participation in additional U.S.-led trade arrangements. During a recent summit with Brazil, Korea also explored cooperation on strategic minerals, with Brazil offering access to its substantial rare earth and nickel resources.
Despite strong political support, commercial ventures have faced obstacles. In 2023, POSCO Future M ended a proposed nickel joint venture in the Philippines, citing economic challenges, and POSCO Holdings withdrew plans for an Indonesian smelter. To date, only JESCO Holdings is pursuing nickel mine development in the Philippines. Industry experts note that fragmented infrastructure—such as limited power, water and port facilities—and demands for local processing add to investment risks.
China’s long-term investments in Southeast Asian mining and early development of HPAL (high-pressure acid leaching) capacity have given it a leading position. As the Philippines reviews an ore export ban and seeks to expand refining capacity, Chinese and Japanese firms are ramping up investments in processing facilities.
In response, South Korea is proposing institutional and financial measures to support overseas resource development. Amendments to the Korea Mine Reclamation Corporation Act are underway to enable state-backed participation in large-scale projects, and officials are considering expanded recycling incentives and tax benefits. “Public enterprises need to partner with the private sector to lower risks and secure viability,” said Kang Cheon-gu, visiting professor at Inha University.
Source: BusinessKorea
