Issue Korean vulnerability: Critical-mineral dependence

Summary

KDI points out that Korea produces almost none of the critical minerals needed for semiconductors, batteries and displays. Import dependence reaches 98% for rare earths and more than 95% for battery materials such as lithium, cobalt and nickel, with net import dependence for critical minerals overall above 99%. China holds a dominant position in these supply chains, and its 2025 restrictions on rare earth exports showed that the risk is concrete. AI chips require gallium, germanium and rare earth magnets, while batteries need lithium, cobalt and nickel. The report's core point is that Korea's strength as a chip supply chain node and its mineral vulnerability sit inside the same value chain.