US IRA Response Card 'Australia'... "Must Cooperate in Mineral and Hydrogen Industries"

Federation of Korean Industries Holds Korea-Australia Business Cooperation Committee (AKBC) and Australia-Korea Business Cooperation Committee Meetings in Sydney

[Asia Economy Reporter Kim Pyeonghwa] As Australia is being considered as an alternative to resolve the issue of excluding Korean electric vehicles from subsidies under the U.S. Inflation Reduction Act (IRA), there is a claim that the two countries should seek business synergies to secure strategic minerals. There is also advice to cooperate in establishing international standards in the hydrogen industry sector.

On the 30th (local time), the Federation of Korean Industries held the Australia-Korea Business Cooperation Committee (AKBC) and the 43rd Korea-Australia Economic Cooperation Committee in Sydney, Australia. The Korea-Australia Economic Cooperation Committee is the only private economic consultative body between the two countries and marked its 43rd anniversary this year. This year, it was held face-to-face for the first time in three years, with more than 170 businesspeople from both countries attending.

At this economic cooperation meeting, various areas such as ▲research cooperation ▲strategic minerals ▲defense industry ▲finance ▲agriculture ▲clean energy were discussed as ways for the economic sectors of both countries to collaborate. Lee Hee-jin, director of the Australia Research Center at Yonsei University, who spoke at the event, argued that "the two countries should cooperate in establishing international standards in the hydrogen economy, a new technology field, and lead this sector."

There was also discussion about the potential for cooperation between Australia, which has competitiveness in clean hydrogen production, and Korea, which has competitiveness in hydrogen utilization such as hydrogen vehicles. POSCO Holdings, which participated in the presentation, argued that active incentives from both governments are necessary to produce green hydrogen in Australia and to activate carbon capture and storage (CCS) projects.

Advice was also given to seek synergy by combining Australia's key minerals with the technological capabilities of domestic companies. Since Korea has technological capabilities that can replace China in the global battery and materials sector, it was explained that cooperation with Australia, which ranks second in the world in reserves of six key minerals including lithium, nickel, and cobalt, and sixth in rare earth reserves, should be strengthened.

Choi Jung-woo, Korean co-chairman of the Korea-Australia Economic Cooperation Committee and chairman of POSCO Holdings, said, “The global economy is facing increased uncertainty due to supply chain crises caused by U.S.-China conflicts and the Russia-Ukraine war. As the relationship between the two countries has been elevated to a comprehensive strategic partnership, we must discover cooperative tasks and turn the crisis into an opportunity.”