The Atacama Salt Flats in Chile turn gold.



At first glance, it looks like real gold, but what is it?


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If salt water is evaporated for a year and a half, this yellow lithium iron phosphate is obtained, which becomes lithium carbonate, the core material of batteries.



As the battery industry rises, lithium is attracting attention as it is called 'new oil' and 'white gold'.



It is emerging as a weapon as powerful as gold in the global market.



Chile is the world's second-largest lithium producer, and 55% of the world's reserves are combined with neighboring countries Argentina and Bolivia, so it is called the 'lithium triangle' or 'triangle'.



However, the industry is nervous as these countries have recently revealed that they are promoting the formation of a so-called lithium alliance to maximize lithium-related profits.



Another key mineral for batteries is nickel, and Indonesia, the largest producer, said it was considering forming a cartel like OPEC, the Organization of Petroleum Exporting Countries.



This kind of attempt to control the supply chain, centered on mineral-rich countries, is being blatantly revealed.



There are also declarations of nationalization of resource development.



This is because when the government takes the initiative, it can control production and exports in its favor and strengthens its pricing power.



Mexico announced earlier this year that it would nationalize lithium development, and Chile proposed a bill banning private participation in raw material mining.



In addition, China accounts for 70% of the world supply of rare earths.



China has already launched a super-large rare earth state-owned enterprise by merging related companies and research institutes, and is growing even bigger by absorbing rare earth mine development companies.



Why are these things happening?



This is because the global supply chain has collapsed due to the corona pandemic, and the price of raw materials has risen significantly, and the war between Russia and Ukraine is prolonging.



As economic uncertainty grows and a sense of crisis spreads, it is analyzed that the keynote of self-reliance, called the New Cold War, became the background of 'new resource nationalism'.



And it's working quite well in the market.


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Recently, LG Energy Solutions, POSCO, Hyundai Motor Company, and China's CATL announced large-scale investments in Indonesia, and it turned out that Indonesia's nickel export restrictions were behind it. 



When Indonesia declares a ban on nickel ore exports, it will invest in the country to secure nickel stably. 



As seen in the case of Russia, which closed the gas valve to Europe, energy, minerals, and food are becoming a means of putting pressure on the opposing camp in the New Cold War system, that is, weaponization of resources is becoming a reality. 



In Korea, which is highly dependent on foreign resources, the burden is bound to increase.



In fact, the situation of companies is not good.



For example, Samsung Electronics spent more than 100 trillion won for the first time last year on raw material purchases, which is largely due to rising raw material prices.



There is a limit to diversifying import sources because China is so dependent on China for major raw materials for automobiles, batteries, semiconductors, and petrochemicals.



A comprehensive two-track strategy that approaches resource diplomacy from resources of security and improves efficiency through the development of raw material reduction technology is urgently needed. 



(Planning: Yumi Jung, Composition: Heesuk Shin, Video coverage: Jeon Gyeongbae · Cho Changhyun, Video editing: Jeon Minkyu, CG: Kim Jong Un)