Korea Zinc chief calls for 'green energy alliance' with Chile beyond critical minerals

Korea Zinc Chairman Choi Yun-beom [Korea Zinc]

Korea Zinc Chairman Choi Yun-beom has proposed broadening cooperation with Chile — a country rich in copper, lithium and other critical minerals — to encompass smelting, batteries and green hydrogen. The vision goes beyond simply importing raw materials: Choi envisions a supply chain that pairs South Korea's smelting and manufacturing technology with Chile's natural resources and renewable energy.

Korea Zinc said Friday that Choi attended the Korea-Chile Business Roundtable held Thursday (local time) in Santiago, Chile, on the sidelines of President Lee Jae Myung's visit to the country. The event was co-hosted by South Korea's Ministry of Trade, Industry and Energy and Chile's Ministry of Foreign Affairs, and organized by the Korea Chamber of Commerce and Industry and the Sociedad de Fomento Fabril. Government and business representatives from both countries discussed critical minerals, advanced industries, digital technology and clean energy.

"Chile is a global powerhouse in mineral resources and, at the same time, is emerging as a world leader in green energy on the strength of its abundant solar and wind resources," Choi said at the event. "I am deeply honored to take part in this meaningful occasion to discuss future areas of cooperation between South Korea and Chile."

Choi said the two countries should move beyond the existing division of labor — in which Chile supplies critical minerals and South Korea processes them. Combining South Korea's smelting, battery and hydrogen technology with Chile's mineral and renewable energy resources, he argued, could create a framework covering everything from raw material procurement and processing to clean energy production.

"If South Korea and Chile join forces, we can build not only a stable critical minerals supply chain but also the most exemplary model of cooperation — one that leads the carbon-neutral era together," Choi said.

President Lee Jae Myung poses for a photo with participants at the Korea-Chile Business Roundtable at a hotel in Santiago, Chile, on Thursday (local time). [Yonhap]

The two governments also formalized critical minerals cooperation that day. President Lee and Chilean President José Antonio Kast agreed at their summit to expand information sharing, technology cooperation and personnel exchanges under a mineral resources partnership MOU. A separate investment cooperation MOU will be used to identify business-to-business investment opportunities in the critical minerals and energy sectors.

Choi also shared his personal ties to South America. From 2010 to 2013, he served as president of ICM Pachapaqui, Korea Zinc's Peruvian subsidiary, overseeing the development of a mine located 4,000 meters above sea level. He said the experience gave him firsthand insight into the growth potential of South America's minerals industry.

Choi also revealed how Chile's solar power sector influenced Korea Zinc's own renewable energy push. While serving as president of SMC, Korea Zinc's Australian zinc smelter, he came across reports that Chile had achieved strong price competitiveness in large-scale solar power generation as he was looking for ways to manage rising electricity costs.

SMC went on to complete a 124-megawatt solar power plant in Australia in 2018. Drawing on that experience, Korea Zinc has since pursued solar, wind, battery energy storage system (BESS) and green hydrogen projects through its Australian subsidiary Arc Energy. BESS facilities store electricity in batteries and release it to the grid during periods of high demand.

"One country's innovation gave birth to a new industry in another," Choi said. "I remember Chile as a country that gave me deep inspiration for my business." He added that Arc Energy "is growing into a comprehensive green energy company investing at scale in solar, wind, BESS and green hydrogen production and transportation."

Arc Energy is currently advancing the Richmond Valley solar and BESS project and the Bowmans Creek wind power project in Australia. The Richmond Valley project has been selected as a long-term energy service contractor by the state government and has received federal environmental impact assessment approval along with grid connection authorization.

"Chile today is one of the few countries in the world that possesses both critical minerals and clean energy," Choi said. "South Korea has world-class manufacturing technology and capabilities across smelting, batteries and hydrogen."

Korea Zinc, which is leading the effort to build a critical minerals supply chain for the free world centered on South Korea, aims to deepen cooperation with Chile across not only critical minerals but also future energy industries including BESS and green hydrogen, Choi said. "The future that South Korea and Chile build together will go beyond simple resource cooperation — it will be a new partnership that opens an era of sustainable growth and clean energy," he added.

kwater@heraldcorp.com