Australian battery metal players key to South Korea's EV ambition

Posco International

30/11/2022 06:02

SYDNEY, Nov 30 (Reuters) - Australia will play a big
role in South Korea's ambition to lead the electric vehicle
batteries market and diversify from China for its battery metals
needs, a top South Korean executive said on Wednesday.
    Ben Bosung Kim, the managing director for steel giant POSCO
 005490.KS  in Australia, said the company has already invested
around A$5 billion ($3.4 billion) in the country, which covers
traditional raw material such as iron ore and coal, and more
recently lithium, nickel, graphite and other minerals needed to
manufacture electric car batteries. 
    "Australia and Korea are always complementary and
interdependent in terms of Australia's mining and Korea's
manufacturing," Ben told Reuters at the sidelines of the
Australia-Korea Business Council (AKBC) conference in Sydney. 
    "It was like that in the past in terms of steelmaking, and
it will be for the battery materials in the future," he said.
    The Asian country controls a third of the $46 billion market
for electric vehicle batteries but it relies heavily on China
which is a key supplier to Korea for electric vehicles. 
    In recent years, U.S. allies have moved to reduce their
dependence on China amid heightened concern about Beijing's
control over the critical minerals sector.
    South Korea needs critical mineral supplies, having pledged
to become a battery manufacturing powerhouse by 2030 as part of
a plan to be carbon-neutral by 2050.
    POSCO last year entered into a joint venture deal with
Pilbara Minerals Ltd  PLS.AX  to build a 43,000 tonne lithium
hydroxide chemical facility in Gwangyang, South Korea. It also
bought a 30% stake in First Quantum Minerals Ravensthorpe nickel
mine in Western Australia. 
    POSCO executives at the conference said that Australia is
going to be a critical target for the company for investment
into hydrogen projects. 
    In a presentation, POSCO Executive Vice President and Head
of Hydrogen Business, Juik Choo, said the company wants to
become a global hydrogen provider with capacity to produce 7
million tonnes by 2050. Part of this plan is to build
large-scale hydrogen production base in Australia that can
deliver 1 million tonnes by 2040.
    Choo said the global race to be the first and largest
provider of hydrogen is gaining speed, with the U.S. this year
passing the Inflation Reduction Act (IRA) that offers big
incentives for hydrogen production.
    The Australian government should offer similar incentives so
the country can be a leader in global hydrogen exports, he said.
   
($1 = 1.4923 Australian dollars)
 (Reporting by Melanie Burton; Editing by Stephen Coates)
 ((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals;
+613 9286 1421; Reuters Messaging:
melanie.burton.thomsonreuters.com@reuters.net))