Seoul: Industry ministry here said on Monday it will make contingency plans to ensure a smooth supply of some graphite products as China curbs exports of the key battery material.
First Vice Industry Minister Jang Young-jin made the remarks at a meeting with relevant government officials and corporate executives earlier in the day, saying that China’s curbs of some graphite products would have a significant impact on South Korean companies.
Last week, China announced it will require export permits for shipments of graphite, a key material used for rechargeable batteries, starting in December in a move that could take a toll on South Korean companies.
Jang told the meeting that there is a “significant concern” about the impact of China’s move on South Korean high-tech industry and the South Korean government will “open up all possibilities and prepare closely” for the Chinese curbs, reports Yonhap news agency.
In a statement, the ministry said it “plans to implement necessary measures in accordance with supply and demand conditions and the circumstances of graphite through the contingency plan.”
South Korea’s imports of synthetic and natural graphite for batteries came to US$241 million in 2022, with China taking up 93.7 percent of the volume.
South Korea will also build capabilities to supply domestically produced synthetic graphite starting next year, the ministry said.
The government is making efforts to diversify its supply chain by securing the materials from Tanzania and Mozambique as well, according to the ministry.
–IANS