Ministry of Industry: "China Controls Graphite Exports... Closely Monitoring Supply and Demand Trends"

Industry "Concerns Over Increasing Import Period"

On the 20th, the Ministry of Trade, Industry and Energy held an 'Industrial Supply Chain Inspection Meeting' at the Korea Chamber of Commerce and Industry, chaired by Andeokgeun, the head of the Trade Negotiation Headquarters, to assess the impact on the domestic supply chain following China's announcement this morning of graphite export controls (effective December 1). The meeting was attended by the Battery Industry Association, major domestic battery manufacturers, and the Materials, Parts, and Equipment Supply Chain Center.

According to the Ministry, China's measure is a partial adjustment of the items subject to the 'Temporary Export Control Measures on Graphite-related Items' announced in 2006. It includes high-purity natural graphite for secondary battery anodes, while some low-sensitivity items have been excluded from control.

Under this measure, Chinese companies must undergo a procedure to verify whether the items are dual-use (military) goods when exporting these products. South Korea imported $241 million worth of artificial graphite and natural graphite for secondary battery anodes in 2022, of which 93.7% was imported from China.

Industry representatives attending the inspection meeting stated that this measure is not an export ban but an export licensing procedure, and emphasized the need to continuously monitor the situation carefully. They also expressed concerns about extended import periods due to the licensing process and announced plans to respond by securing inventory in advance to prevent supply disruptions.

In response, Andeokgeun, head of the Trade Negotiation Headquarters, stressed, "The government will maintain close communication with the Chinese government and domestic industry to ensure that this Chinese measure does not lead to production disruptions in the domestic core secondary battery industry."

The Ministry plans to closely consult with the Chinese Ministry of Commerce through dialogue channels to minimize the impact on Korean companies and to thoroughly inspect and respond to the graphite supply chain with the industry. Additionally, the Ministry will actively support the operation of a domestic artificial graphite production plant scheduled to start next year and the fulfillment of long-term supply contracts signed by private companies with mines in third countries such as Tanzania, thereby securing additional response capabilities.

This content was produced with the assistance of AI translation services.