Korea to boost mineral recycling to counter US-China trade risks

South Korea aims to achieve a 20% recycling rate for strategic critical minerals by 2030, as intensifying trade tensions between the US and China expose the country to supply uncertainties.

The Asian nation is targeting the recovery of 10 minerals from goods such as discarded batteries and printed circuit boards to assist sectors like semiconductors and electric vehicles, according to a joint statement from the trade and finance ministries on Tuesday. The list includes lithium, nickel, cobalt, manganese, graphite, and five rare earth elements.

The move is part of South Korea’s efforts to reduce its heavy reliance on imports, particularly from China and Chile. Recent trade conflicts are exacerbating the problem, with the US administration trying to compel nations to move away from Chinese supplies, potentially hurting Korean battery makers working with US car companies. These include top producers LG Energy Solution, Samsung SDI Co. and SK On Co.

China dominates the global recycling market, producing over half of the battery scrap and holding the lion’s share of preprocessing and material recovery capacity. Global companies are trying to chip away at its control as demand for critical minerals escalates.

South Korea currently depends on imports for 99% of its metal supply due to limited domestic resources. To remedy that, the government said it will establish a recycling cluster, a battery tracking system, and a certification for recovered materials. It will also offer financial support to new projects with transformative potential for the sector.

(By Heesu Lee and Annie Lee)