Fortune Minerals Ltd T.FT

Concerns loom among Korean battery makers

[Allman]

... Although the passage of the IRA will provide an opportunity for three major Korean battery makers LG Energy Solution, SK On and Samsung SDI to secure an edge over their Chinese competitors, including CATL and BYD, Korean battery makers now have a new task of securing alternative sources of raw material supplies other than Chinese suppliers by 2024. Do-hyeon Kim, a researcher at SK Securities, mentioned, “A high dependency on Chinese materials for battery parts has surfaced as an issue affecting the U.S.  China conflict and the tendency of diversifying import sources by global battery makers and material producers is increasing.” The researcher, however, indicated, “It is concerning that Korean battery makers rely on China for 83% of their Lithium hydroxide demands, 87% of their Cobalt demands and 99% of their Manganese(II) sulfate demands.” ...

Another official familiar with the industry said, “We are concerned with the issue of diversifying the source of raw materials” and added, “Although the passage of the IRA is an opportunity for Korean battery makers as the new law effectively bars Chinese battery makers from accessing the American market, it is imperative for Korea to be prepared in the mid to long term to diversify the source of raw materials.”

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