WA and South Korea are looking to strengthen cooperation in renewable energy and critical mineral supply chains under a new memorandum of understanding (MOU).
The MOU was signed by South Korea’s Minister of Trade, Inkyo Cheong, on behalf of Korea’s Ministry of Trade, Industry and Energy (MOTIE) and WA Premier Roger Cook.
It builds on a letter of intent signed in January 2023, aiming to enhance cooperation between the WA Government and MOTIE in the areas of clean energy development and processing.
Western Australia is rich in critical minerals and has “vast potential” for clean hydrogen and ammonia production, MOTIE said. The MOU is expected to “advance bilateral energy collaboration in various areas including critical minerals, hydrogen, CCS [carbon capture and storage] and renewables”.
Cook commented: "We see real opportunities to grow our trading partnership, as part of my plan to position WA as a global renewable energy powerhouse.”
The Korean trade minister also met with Australia’s Minister for Resources and Minister for Northern Australia Madeleine King on 1 September in Perth on the sidelines of the 6th Korea-Australia FTA Joint Committee meeting. The pair discussed cooperation concerning liquefied natural gas, critical minerals and CCS. Minister Cheong also asked for support towards Korean companies investing in the Australian market.
Australia’s Minister for Trade and Tourism, Don Farrell, stated: “To date, Australia’s world-class resources have been at the centre of our economic relationship with the Republic of Korea – we are the largest supplier to Korea of LNG, coal and iron ore.”
He added that Korean steel-maker POSCO, "purchases more than $7bn worth of Australian resources each year, making it the largest single private customer of Australian exports".
In 2023, South Korea was WA's third-largest trading partner with $18.1bn of goods traded.
The meetings took place in commemoration of the tenth anniversary of the Korea-Australia Free Trade Agreement (FTA) entering into force between 1–3 September.
Under the FTA, more than 99% of Australian exports to the Republic of Korea are eligible for duty-free access.
A 2022 agreement between Australia and Korea also aims to strengthen the supply and demand of critical minerals.
