DA Technology Signs Exclusive Import and Sales Agreement for Natural Graphite with Vietnam's VGG

DA Technology has secured exclusive import rights for Vietnamese natural graphite worth 1 trillion KRW.

DA Technology announced on the 3rd that it has signed an exclusive natural graphite contract with Vietnam Graphite Group (VGG). Through this contract, DA Technology has obtained exclusive rights for the import and domestic sales of natural graphite with a purity of 99.97% produced by VGG.

The two companies signed a memorandum of understanding (MOU) related to the distribution and import/export of natural graphite last December, and after discussing detailed conditions and preparing for joint investment, they finalized this contract.

Accordingly, the two companies plan to proceed with joint investment related to the import and export of graphite mined, processed, and refined in Vietnam. Based on its existing graphite mines and processing plants, VGG will supply at least 20,000 tons of natural graphite annually to DA Technology. DA Technology has been granted exclusive import and domestic sales rights for natural graphite with a purity of 99.97% mined, crushed, and refined by VGG, and will handle domestic distribution.

A company representative explained, “In 2023, China’s dependence on natural graphite reached 96.4%, the highest in the past five years,” adding, “With China tightening overseas export controls on graphite last December, DA Technology’s securing of exclusive import rights for Vietnamese natural graphite is expected to play a positive role in domestic graphite supply.”

DA Technology plans to jointly invest in production facilities such as graphite processing (refining and smelting) plants to expand graphite production capacity (CAPA) and refine high-purity graphite. The high dependence on China for graphite is due to China’s strong advantages in smelting and processing, making it difficult to find suitable alternatives. Importing minerals like graphite from China is cheaper than processing and smelting domestically. Therefore, DA Technology intends to become a strong competitor by expanding refining plants for Vietnamese graphite and enhancing smelting technology.

A company representative said, “VGG is a mineral resource specialist company with over 20 years of experience, operating mining and mineral businesses with official business licenses and permits from the Vietnamese government, thus possessing abundant know-how and references,” adding, “We plan to strengthen competitiveness in domestic natural graphite distribution and raw material supply by expanding business cooperation such as increasing graphite processing plant capacity together with VGG.”

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