Seoul: South Korea and Australia have agreed to enhance their cooperation in the key minerals and energy sectors as they aim to tackle growing global economic uncertainties, as stated by Seoul’s finance ministry.

According to Yonhap News Agency, this agreement was made during a virtual meeting on Friday between South Korea’s Finance Minister Choi Sang-mok and Australian Treasurer Jim Chalmers. The two ministers acknowledged that increasing global trade uncertainties could adversely affect their trade-dependent economies.

To counter these challenges, they stressed the need for mutually beneficial cooperation to ensure stable supply chains, particularly in the energy and critical minerals sectors. They also agreed to pursue joint efforts through the Group of 20 (G20) and other multilateral cooperative frameworks.

“As long-standing close partners, South Korea and Australia have agreed to work together to overcome current challenges. South Korea will continue to maintain close communication with Australia and other key partner nations,” the ministry said in a release.

The ministry highlighted that Australia is abundant in lithium, cobalt, liquefied natural gas, and other natural resources, and has significant potential for producing clean hydrogen and ammonia. This is largely due to its favorable weather conditions.

South Korea is looking to explore new suppliers of major minerals to lessen its heavy reliance on China.