SEOUL, South Korea — A recent report indicates a significant projected increase in South Korea's demand for key minerals crucial to the electric car and wind power industries. By 2040, this demand is expected to rise dramatically, in some cases by as much as nineteenfold compared to 2021 levels.
According to Yonhap News Agency, the expansion of these industries will drive up the demand for lithium, nickel, manganese, and cobalt — all essential for electric car batteries — by fifteen, twelve, nineteen, and four times respectively by 2040. Additionally, the demand for neodymium, praseodymium, dysprosium, and terbium, which are needed for electric car motors, is expected to increase tenfold. This surge is anticipated in response to electric car sales in South Korea, which are projected to grow eleven times over the same period.
The KEEI report also forecasts an eightfold increase in new wind power installations by 2040 from 2022, which would result in a 2.6 to 21.6 times increase in the demand for materials such as neodymium, praseodymium, dysprosium, and terbium. These materials are critical for the development of wind power facilities.
To address these growing demands and reduce its dependence on China for these essential minerals, the KEEI recommends that South Korea should diversify its key mineral supply chain. This strategy is considered vital for strengthening the country's competitiveness in the rapidly expanding electric vehicle and secondary battery markets. As of 2022, South Korea has relied heavily on imports from China for its supplies of nickel, manganese, and cobalt.