As geopolitical tensions rise, particularly with China’s restrictions on rare earth exports, South Korea’s POSCO International and LX International are taking bold steps to secure critical mineral supply chains. These minerals—nickel, graphite, and others—are becoming vital assets as global trade wars intensify and countries look to control key resources , according to BusinessKorea.

POSCO International is setting its sights on major investments in overseas mineral projects, utilizing approximately 25 billion won from a recent internal restructuring. The company transferred its domestic steel scrap operations to its sister company, POSCO, allowing it to focus on securing resources like graphite and other raw materials abroad. This strategic shift aligns with POSCO Group’s long-term plan to dominate the secondary battery supply chain, particularly for batteries used in electric vehicles. Graphite, a critical material for anode production, is predominantly mined in Africa and China, with China accounting for 70% of global production. To counter this reliance, POSCO International is aggressively investing in African graphite assets.

The company already holds a 19.9% stake in Black Rock Mining, which owns the Mahenge graphite mine in Tanzania. POSCO plans to import 30,000 tons of graphite annually from this mine starting in 2026, expanding to 60,000 tons by 2028. Additionally, POSCO International has signed a Memorandum of Understanding with Canada's NextSource Energy to secure a long-term graphite supply from Madagascar.

Nickel, another vital resource for secondary battery production, is also on POSCO International’s radar. The company has been involved in Madagascar’s Ambatovy nickel mine since 2006, holding a 4% stake. The mine is part of a broader consortium, and POSCO International’s investments in nickel aim to strengthen its position in the global battery market.

Meanwhile, LX International has shifted its focus from coal to critical minerals like nickel, recognizing the growing importance of securing these resources for industrial competitiveness. In 2023, LX International acquired a 60% stake in PT Adikartika Pratama, a nickel mining operation in Indonesia, for 133 billion won. The mine’s annual nickel production is set to reach 3.7 million tons in three years. LX International is also exploring additional nickel assets in Indonesia and diversifying its portfolio to include copper. The company recently engaged with Chilean mining leaders to discuss potential copper investments, while also eyeing projects in the Philippines and Australia.

The rising global protectionism, especially amid the ongoing trade tensions between the U.S. and China, has made securing these critical mineral supply chains more urgent than ever. In response to the U.S.’s push for mining rights in Ukraine and its aggressive mineral agreements, China has imposed severe export restrictions. In early 2025, China halted the export of several minerals, including gallium, germanium, and antimony, as part of its countermeasures against the U.S. The battle over mineral resources is not just a corporate issue; it has become a matter of national industrial competitiveness.

As the world’s appetite for these essential minerals grows, POSCO International and LX International are positioning themselves as key players in securing the future of global supply chains.