South Korea, Brazil Ink Deal on Critical Minerals, Eyeing Supply Chain Resilience

South Korea and Brazil have signed a joint statement on critical minerals, signaling a strategic partnership to build robust and diversified supply chains. The agreement, announced on July 28, aims to enhance cooperation in securing essential resources, including rare earths.

The joint statement, made during South Korean President Lee Jae-myung's state visit to Brazil, underscores the importance of developing resilient supply chains that extend from upstream mining to downstream product manufacturing. A key focus is on promoting local processing and value addition to achieve shared prosperity.

Brazil holds the world's second-largest reserves of rare earths and is rich in other resources like iron ore and graphite. However, the country has historically relied heavily on exporting raw materials, limiting domestic value creation. The joint statement acknowledges Brazil's resource sovereignty and policy autonomy, ensuring that cooperation is mutually beneficial and respects national interests.

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The significance of the agreement lies in building resilient and diversified supply chains for critical minerals, including rare earths, and emphasizing joint prosperity through local processing and value creation.

Both nations recognize the significance of preserving national sovereignty and policy autonomy in the development of their mineral sectors. This understanding forms the basis for a cooperative framework where South Korea and Brazil can work together on a reciprocal basis.

Moving forward, the countries plan to establish institutional cooperation mechanisms. These efforts will include exploring concrete collaboration and investment opportunities focused on technology exchange and increasing value addition throughout the mineral supply chain.

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Both countries recognized the importance of preserving national sovereignty and policy autonomy in mineral sector development.