"Impact of China's Graphite Export Controls to Ease Within 3 Months... Possible Effects on K-Battery Companies Entering the US Market"

Martial Arts 'Graphite Export Control Impact and Response Report'
Possibility of Retaliation Against the US... "Need to Shift Import Sources to Third Countries, etc."

Concerns have arisen that Korean battery companies entering the U.S. market may face difficulties in importing graphite for their factories due to China's export controls on graphite. Graphite is a key material for electric vehicle battery anodes.

The Korea International Trade Association (KITA) released a report titled "Impact and Response Measures of China's Graphite Export Controls" on the 30th.

KITA forecasted that while China's graphite export volume may temporarily decrease once the export controls are fully implemented, exports are expected to normalize within three months.

Based on data from January to September this year, Korea's dependence on graphite product imports from China stands at 97.7% for natural graphite and 94.3% for artificial graphite.

POSCO Future M Pohang Artificial Graphite Anode Material Factory. [Photo by POSCO Future M]

KITA analyzed the case of China's graphite export controls in September 2006. In September and October of that year, China's graphite exports decreased by 24.4% and 4.8% respectively compared to the same period the previous year, but exports increased by 36.6% in November, returning to normal.

KITA stated, "Given Korea's high dependence on graphite imports from China, there may be temporary supply disruptions when China's graphite export controls are implemented. However, based on past cases, exports are expected to resume approximately three months after implementation."

On the 20th, China adjusted the list of controlled graphite export items. Starting in December, in addition to existing artificial graphite, high-purity natural graphite for secondary battery anodes will be added to the control list.

China has controlled exports of gallium and germanium related to advanced semiconductors since August and is also blocking graphite exports.

Wonbin Do, a researcher at KITA, said, "Since China's export control measures are interpreted as retaliatory actions against the U.S., if U.S.-China relations deteriorate further, there is a possibility that export permits for Korean battery companies with factories in the U.S. may be delayed or denied."

Researcher Do added, "In the mid to long term, it is necessary to diversify graphite import sources to countries such as Mozambique, Brazil, and Japan, and to develop silicon anode material technology as a graphite substitute to reduce supply chain risks."

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