(Ecofin Agency) - The first South Korea-Africa summit took place from June 4 to 5, 2024, with critical minerals at the forefront of discussions. 

The summit saw the signing of 50 agreements between South Korea and 48 African countries, with several related to the mining sector. Notably, agreements were signed with Madagascar and Tanzania to secure supplies of critical minerals for the Korean battery industry.

According to Agence Ecofin, Africa’s third-largest graphite producer, Tanzania, plans to borrow $2.5 billion from South Korea over the next five years through concessional loans, and has also signed agreements for Korea to exploit its minerals used in clean energy technologies, including nickel, lithium, and graphite.

Korea’s interest in graphite is not surprising, given the ambition of Korean giant POSCO to quadruple its battery anode production, bringing it to 320,000 tonnes by 2030. The ambition puts Tanzania and other countries like Uganda, Mozambique, and Madagascar.

South Korean President Yoon Suk Yeol expressed hope that the summit would lead to expanded resource cooperation between his country and the African continent. "Despite its enormous potential, Africa still accounts for only 1% to 2% of South Korea's trade and investment. I hope that mutually beneficial resource cooperation will be expanded," the leader said.

As a reminder, South Korea has committed to providing $24 billion in aid and investment support to Africa by 2030.