South Korean battery manufacturers will work together to eliminate dependence on Chinese raw materials

South Korean battery manufacturers will work together to eliminate dependence on Chinese raw materia

South Korea's companies are strong in the manufacture of memory chips and traction batteries for electric vehicles, but in both areas they depend heavily on the Chinese market. PRC suppliers control a significant share of the market for lithium batteries, so they will have to reduce dependence on China in light of Korean producers' orientation to the US market.

Now, as Korea IT News explains, more than 90% of the raw materials for the manufacture of lithium battery anodes and cathodes are delivered through China, even if the raw materials in the sky are not produced. South Korean traction battery manufacturers are interested in the United States market, and a recent U.S. legislative initiative is a refusal to grant concessions for those electric vehicles for which raw materials have been obtained from countries that do not have a free trade agreement with the U.S. These requirements will gradually increase, and the US electric car subsidy program is for ten years, so it makes sense for Korean suppliers to reduce dependence on imports of raw materials from China.

According to the source, LG Energy Solution, Samsung SDI and SK On will work together to develop cooperation with suppliers of materials for the manufacture of traction batteries from South Korea. EcoProBM and POSCO Chemical, for example, will produce raw materials for the manufacture of cathodes and increase their capacity four times over the next couple of years. EcoPro will even build a plant in the United States, while POSCO will not only produce artificial graphite in South Korea, but will also build an enterprise in the United States, the first among Korean companies.

Enchem will develop electrolyte production in South Korea and the United States, while SK IE Technology and Enerver Battery will produce lithium battery dividers in the United States, all of which will enable Korean electric battery manufacturers to become more confident in the US market and claim local benefits from ready electric vehicles.