Korea and Argentina Forge Critical Minerals Alliance... Expanding Cooperation Beyond Lithium to Copper and LNG

Agreement Reached on Joint Critical Minerals Projects and Director-Level Hotline

Expansion of AI and Manufacturing Cooperation, Progress in Korea-MERCOSUR TA Also Discussed

Kim Jungkwan, Minister of Trade, Industry and Energy (left), is greeting Luis Andres Caputo, Minister of Economy of Argentina, before their meeting at the Ministry of Economy conference room in Argentina on the 31st of last month (local time). Ministry of Trade, Industry and Energy.

On the occasion of President Lee Jaemyung's state visit to Argentina, South Korea and Argentina have established their first-ever intergovernmental cooperation system in the field of critical minerals. The partnership, which had been focused on lithium, will now expand into other minerals such as copper, as well as into crude oil and LNG, signaling the formal beginning of broader supply chain collaboration between Korea and Latin America.

The Ministry of Trade, Industry and Energy announced that Minister Kim Jung-Kwan signed a "Korea-Argentina Memorandum of Understanding (MOU) on Critical Minerals Cooperation" with Argentina's Ministry of Economy on the 31st of last month (local time).

According to this MOU, the two countries have agreed to collaborate on exchanging information about critical mineral policies and investment systems, advancing joint lithium supply chain projects, expanding cooperation between geological survey institutions, and establishing a director-level hotline. The Ministry anticipates that this will provide a stable foundation for Korean companies’ lithium businesses in Argentina and further expand cooperation to include new critical minerals such as copper in the future.

During his meeting with Luis Andres Caputo, Argentina’s Minister of Economy, Minister Kim requested swift and predictable permitting procedures and infrastructure support to ensure that existing projects, such as POSCO's "Sal de Oro" lithium project, can proceed without setback.

He also proposed sharing information about new mining projects and increasing Korean business participation, and discussed expanding imports of Argentine crude oil as well as medium- to long-term cooperation on LNG supplies. Both sides agreed to hold a joint government-private sector meeting within the year to identify further cooperative projects.

At the meeting, the two countries also discussed ways to advance negotiations on the Korea-MERCOSUR Trade Agreement (TA). Minister Kim expressed his gratitude for Argentina's efforts to resume the negotiations, which had been suspended for five years, and proposed continuing cooperation to strengthen supply chains and improve market access. Expanding cooperation in the manufacturing and artificial intelligence (AI) sectors was also placed on the agenda.

At the subsequent roundtable with the Korean community and Korean businesses in Argentina—including POSCO Argentina, Samsung Electronics, LG Electronics, and LX Pantos—local companies conveyed their concerns about investment and trade barriers. POSCO Argentina noted that it recently received approval under the large-scale Investment Promotion and Import Regime (RIGI), which grants tax benefits. Some companies, however, cited the country's low sovereign credit rating and non-tariff barriers as significant obstacles to investment and exports.

Minister Kim stated that the Korean government will strengthen cooperation with the Argentine government to resolve these local challenges and improve the business environment.

This content was produced with the assistance of AI translation services.