South Korean President Lee Jae Myung declared on 1 August 2025 that South Korea and Argentina are entering a new era of bilateral cooperation, anchored by a formal agreement on critical minerals — including lithium — and Argentine crude oil imports set to begin next year. The announcement came at the conclusion of Lee's three-nation South America tour, with Buenos Aires as its final stop.

Summit Outcomes and the MOU

President Lee held a bilateral summit with Argentine President Javier Milei earlier on Friday, during which the two leaders agreed to deepen cooperation across critical mineral supply chains and energy trade. A memorandum of understanding (MOU) was signed on the sidelines of the summit to formalise the arrangement.

Under the MOU, both governments will exchange policy information on critical minerals and related investment frameworks, promote corporate investment flows in both directions, and pursue joint projects spanning the entire lithium value chain — from exploration and mining through to processing — according to South Korean National Security Advisor Wi Sung-lac.

Argentine Crude Oil: A New Supply Line for Seoul

The two countries also agreed to ensure stable exports of Argentine crude oil to South Korea. Seoul plans to begin regular imports of Argentine crude next year, following a pilot shipment conducted earlier in 2025. The move is designed to reduce South Korea's heavy dependence on Middle Eastern oil and diversify its energy supply base toward South America, according to Advisor Wi.

This diversification is seen as strategically significant given persistent geopolitical uncertainties affecting traditional supply routes. South Korea currently sources the bulk of its crude from the Middle East, making alternative supply lines a long-term energy security priority.

Lee's Message to the Korean Community

Speaking at a meeting with members of the South Korean community in Argentina, President Lee struck a confident tone. 'I am confident that a new era of cooperation between Argentina and South Korea will fully unfold,' he said.

He added: 'Amid the changing international order, from the artificial intelligence revolution to shifts in global supply chains, strategic bilateral cooperation is more important than ever.' Lee characterised the relationship as moving beyond intent into 'tangible results,' with collaboration now spanning critical minerals, energy, and infrastructure.

Strategic Context: Why This Partnership Matters Now

Argentina holds some of the world's largest lithium reserves, a resource central to electric vehicle batteries and the global clean energy transition. For South Korea — home to major battery manufacturers and EV component exporters — securing reliable lithium access is a top industrial priority, particularly as competition with China over critical mineral supply chains intensifies.

This is not an isolated bilateral overture. Lee's South America tour was explicitly framed around critical mineral supply chain security, reflecting a broader Seoul strategy to reduce dependency on single-source suppliers. The Argentina stop, as the tour's final leg, was arguably its most consequential.

What Comes Next

With the MOU now signed, both governments are expected to advance joint lithium projects and formalise the crude oil import schedule for 2026. Industry bodies and energy analysts will watch whether the partnership produces concrete supply agreements within the next fiscal cycle, or remains at the framework stage.