Trafigura has renewed a US$300mn loan facility from the Export-Import Bank of Korea (Kexim) to support the supply of critical minerals to South Korean importers. 

The three-year facility was coordinated by Santander and co-financed with DBS. It renews an existing US$150mn loan initially agreed in December 2021 and upsized in May 2023. 

Commodity trading giant Trafigura says the proceeds will support efforts to provide a “stable supply” of battery-related metals to Korea, against a backdrop of supply chain disruption and growing international tensions. 

“The battery metals market is complex and rapidly evolving amidst shifting geopolitical dynamics,” says Andrew Starkey, the trader’s chief financial officer for Asia-Pacific. 

“Trafigura’s expertise, global reach and extensive supply chain capabilities uniquely position us to provide South Korean industrial companies with secure access to critical minerals such as cobalt, copper and lithium.” 

Demand for these metals is expected to outstrip supply within the next decade, according to forecasts by consultancy McKinsey. 

At the same time, China’s dominant position in the market has prompted greater involvement of state-backed guarantees and financial support, often from export credit agencies such as Kexim, for those seeking alternative sources of supply.