In the wake of establishing diplomatic relations with Cuba, South Korea’s presidential office is poised to explore opportunities for supply chain cooperation, particularly in the mineral sector crucial for electric vehicle (EV) batteries. Cuba’s status as the world’s fifth-largest nickel producer presents a promising avenue for enhancing South Korea’s presence in the global supply chain for rechargeable batteries, vital for EVs and energy storage systems.
Nickel, alongside manganese and cobalt, plays a pivotal role in optimizing the energy density of cathodes, thereby influencing battery capacity and voltage. Given its affordability compared to cobalt, which faces price volatility, nickel emerges as a strategic material for lithium-ion batteries.
The formalization of diplomatic ties between South Korea and Cuba on February 14, 2024, marks a significant step toward fostering collaboration in the mineral supply chain sector. Despite historical constraints stemming from Cuba’s socialist revolution, South Korea is keen on leveraging this diplomatic milestone to strengthen its foothold in Central and South America.
Highlighting Cuba’s substantial potential for cooperation, South Korea’s presidential office underscores the country’s significant standing in nickel production and cobalt reserves on a global scale. The prospect of Cuba emerging as a burgeoning market assumes prominence, particularly if existing U.S. sanctions are lifted.
Overcoming the aftermath of the socialist revolution, Cuba has faced prolonged economic sanctions from the United States, impacting its international trade relations. South Korea intends to lay the groundwork for expanded economic cooperation, envisaging discussions on various fronts, including the establishment of diplomatic missions.
In addition to economic collaboration, South Korea plans to foster cultural exchanges with Cuba, recognizing the growing interest in Korean cultural content among Cuban audiences. The proliferation of South Korean TV dramas and cultural exports, such as “Queen of Housewives” and “My Fair Lady,” underscores the potential for deepening cultural ties between the two nations.
As South Korea embarks on this endeavor to forge supply chain cooperation with Cuba, the focus remains on harnessing synergies in the mineral sector to drive innovation and sustainability in EV battery production. The evolving partnership holds promise for bolstering global supply chain resilience and advancing the transition to cleaner energy solutions.
