President Yoon Suk Yeol has highlighted POSCO Group's lithium project 'Sal de Oro' in Argentina as a prime example of critical mineral cooperation between the two countries. The government plans to diversify its energy supply lines based on HD Hyundai Oilbank's first purchase of Argentine crude oil.
In a written interview with the Spanish-language international news agency EFE, released on July 31, President Yoon stated, "We will sign a memorandum of understanding (MOU) on critical mineral supply chain cooperation during this visit, building on our successful collaboration in lithium production."
He cited POSCO's Sal de Oro project as a key example of this cooperation. The project, undertaken by POSCO's local subsidiary in Salta and Catamarca provinces, encompasses the entire value chain from lithium brine extraction and processing to the commercial production of lithium compounds.
This initiative goes beyond merely importing lithium raw materials from Argentina, combining local production, processing, and value creation. It is seen as a win-win model that provides South Korean companies with a stable supply chain for critical minerals while offering Argentina opportunities for mineral industry advancement and job creation.
President Yoon emphasized that South Korea is the "optimal partner" for the development of Argentina's mineral industry. He noted that combining Argentina's abundant resources with South Korea's capabilities in battery materials and advanced manufacturing could establish a globally competitive critical mineral value chain.
In the energy sector, he pointed to HD Hyundai Oilbank's recent purchase of Argentine crude oil as a sign that energy cooperation between the two countries is moving from discussions to actual transactions.
President Yoon is particularly focused on Argentina's transition from an energy-importing to an energy-exporting country, especially through the expansion of production at the 'Vaca Muerta' shale oil and gas field. Vaca Muerta is a key production site that Argentina is developing to enhance its status as an energy exporter, potentially providing South Korean refiners and energy companies with new sources to diversify their oil imports away from the Middle East.
He assessed that the recent conflicts in the Middle East have exposed vulnerabilities in South Korea's heavy reliance on imported energy, with approximately 70% of its crude oil imports coming from that region. The government is prioritizing the diversification of oil import sources as a national objective.
President Yoon also noted Argentina's stable transportation conditions and its relative immunity to major maritime bottlenecks as advantages. Given these conditions, he explained, Argentina could play a more significant role in the reshaping global energy market.
He expressed hope that this visit would mark a new starting point for energy cooperation between South Korea and Argentina.
The two governments will also strengthen their cooperative framework. The MOU on critical mineral supply chain cooperation to be signed will serve as an institutional foundation supporting collaboration between the governments and businesses of both countries across the entire supply chain, from mineral extraction and processing to material production and advanced manufacturing.
Additionally, President Yoon plans to seek Argentina's support for resuming trade agreement negotiations with Mercosur. South Korea and Mercosur began negotiations for a trade agreement in 2018 but have not made progress since 2021.
Earlier, President Yoon held a summit with Brazilian President Luiz Inácio Lula da Silva, agreeing to announce the resumption of negotiations during the Mercosur summit in December. To achieve this, support from Argentina, as well as Uruguay and Paraguay, members of Mercosur, is necessary.
EFE noted that President Yoon's meeting with Argentine President Javier Milei comes shortly after tensions arose between President Milei and President Lula. However, the written interview with President Yoon took place before any conflicts between the two leaders emerged.
President Yoon acknowledged the existence of differing political views among South American countries regarding trade policies and international issues, stating, "South American countries have resolved territorial disputes through dialogue and compromise and established Mercosur to lower trade barriers in the region."
On this day, he will meet with President Milei in Buenos Aires to discuss critical mineral supply chains, energy, food security, and the resumption of trade agreement negotiations with Mercosur. This marks the first official visit by a South Korean president to Argentina in 22 years.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.