Australia signed a $716.5 million defence deal with South Korea which will boost its military exports. Under the agreement terms, South Korean defence company Hanwha will make 30 self-propelled howitzers and 15 armoured ammunition resupply vehicles for Australia.

“It’s a necessary chapter in the defence sector for Australia as we want to build our sovereign ability, and South Korea is an important partner in that journey,” Australian Prime Minister Scott Morrison said to the media. The deal works with Hanwha as a front runner for Australia’s A$30 billion agreement to build infantry battle vehicles for its army.

While the defence deal is a good start for South Korean President Moon Jae-in’s four-day trip to Australia, both countries said they also agreed to work closely to help in supplies of Australian essential minerals exports for South Korea’s tech sector. South Korea requires necessary mineral supplies as the country want to become a global battery manufacturing powerhouse by 2030 as part of its plan to be carbon neutral by the year 2050.