South Korea is turning to African nations to secure a stable supply of graphite following China’s heightened export controls on the vital resource used for electric vehicle batteries.
In a statement on Monday October 23rd, South Korea’s Ministry of Trade announced its intention to establish connections with countries such as Mozambique and Tanzania to mitigate potential shortages in graphite supply. The African countries rank as the third and twelfth largest sources of graphite worldwide.
China escalated its export controls on specific graphite categories last week, citing the protection of its national security and interests as the primary motivation behind this move.
China, as the world’s leading graphite producer, has triggered concern among prominent South Korean battery manufacturers with its recent announcement.
According to Bloomberg, starting from December 1, Beijing intends to subject highly sensitive graphite to “dual-use item” export controls.
Graphite plays a crucial role in the production of anodes for electric vehicle batteries, which are integral components of rechargeable cells.
China’s announcement coincided with the United States’ increased efforts to restrict advanced chip technology from reaching China. Beijing has clarified that its measures are not directed at any particular country.
To guarantee the uninterrupted import of graphite, South Korea’s trade ministry has plans to enhance high-level diplomatic communication with China.
The country also aims to accelerate the start of a domestic synthetic graphite factory currently scheduled to open next year while bolstering the development of silicon anodes as an alternative to graphite.
South Korea’s decision followed discussions between officials and prominent players in the battery industry, including LG Energy Solution, SK On, Samsung SDI, and Posco Future M.
The nation depends significantly on imports for the manufacturing of a wide range of products, including semiconductors and electric vehicle batteries.
