by Park Eugenie
Published 14 Jan.2024 12:53(KST)
Updated 18 Jan.2025 11:36(KST)
As the Chinese government imposed export controls on graphite, a key material for battery anodes, last year, it is reported that exports of graphite to major Korean battery companies were permitted.
According to the industry on the 14th, the Chinese government approved the export of spherical graphite for anode manufacturing to be supplied to battery material company POSCO Future M in December last year.
POSCO Future M is the only secondary battery anode material manufacturer in Korea and is mass-producing natural graphite-based anode materials at its Sejong plant.
It is also reported that the Chinese government approved the export of graphite anode material finished products to the three major Korean battery companies producing battery finished products: LG Energy Solution, SK On, and Samsung SDI.
China, under the pretext of preventing exclusive military use, added high-purity natural graphite for secondary battery anodes to the existing export control list, which previously included artificial graphite, starting from December 1 last year.
Earlier, in August last year, China imposed export controls on gallium and germanium used in semiconductor manufacturing, and immediately after this, a "review bottleneck" occurred.
According to the Ministry of Trade, Industry and Energy, Korea imported artificial graphite and natural graphite for secondary battery anodes worth approximately $241 million in 2022. Of this, 93.7% was imported from China, indicating a high dependence on China.
Within the industry, there is a prevailing view that since the leaders of the U.S. and China emphasized "stabilizing bilateral relations" in November last year, and Korea and China have maintained continuous communication, China is unlikely to immediately resort to a "no export permission" policy. The fact that the Chinese Ministry of Commerce invited only Korean companies to Beijing in November to explain the direction of its export control policy has been interpreted as a friendly gesture toward Korea.
However, since China has established a system capable of weaponizing key mineral resources through export controls, the industry believes that depending on future changes in the international situation, China may impose "export restrictions."
The Korea International Trade Association suggested in a report last October that "China's export controls are interpreted as retaliatory measures against the U.S., so if U.S.-China relations deteriorate in the future, there is a possibility that export permits to our battery companies with factories in the U.S. may be delayed or rejected," and recommended that "it is necessary to diversify graphite import sources and develop silicon anode material technology that can replace graphite to reduce supply chain risks."
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