China’s graphite export control imminent… Government: Korea-Japan impact on China’s supply chain is inevitable

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On the 23rd, First Vice Minister of Trade, Industry and Energy Jang Young-jin met in the conference room of the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, with related ministries such as the Ministry of Strategy and Finance, Ministry of Foreign Affairs, Trade Association, Korea Machinery Industry Promotion Association, Mine Reclamation Corporation, Battery Association, and the three domestic battery companies, as well as organizations related to the battery industry and supply chain. He is presiding over the ‘Public-Private Joint Graphite Supply Chain Response Meeting’ held with relevant officials in attendance. (Provided by the Ministry of Trade, Industry and Energy) 2023.10.23/News 1

With China’s graphite export control measures taking effect from December 1, Chinese state media pointed out that Korean and Japanese battery companies are unable to escape China’s industrial supply chain.

Previously, the Chinese government announced that it would switch to a permit system for exports of graphite, a key raw material for electric vehicle batteries, starting in December.

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On the 30th, China’s official Global Times reported, “It is very difficult not to be affected by the Chinese industrial supply chain,” citing major Korean and Japanese media outlets saying that Korean and Japanese battery companies are responding to China’s graphite export controls.

The Global Times reported in Japan that Fuji Graphite Industries, which processes graphite imported from China and supplies it to battery manufacturers, secured inventory by increasing the amount of graphite it imports from China to 1.5 times this month and will consider importing graphite from Africa depending on changes in the situation. It was reported citing media reports.

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The Global Times also added that the battery business companies of Mitsubishi Chemical Group, Nissan Motor Company, and Panasonic are seeking to diversify their graphite procurement.

In particular, citing Korean media, it was explained that L&F Korea is accelerating its efforts to secure a new supply chain, including by building a new anode material factory.

“China is the world’s largest producer and exporter of graphite and also has a significant market advantage in other battery raw materials,” Yu Qingjiao, secretary-general of the New Battery Technology Innovation Alliance, Zhong Guanchun, told the Global Times.

Secretary-General Yu Qingjao said, “The market concentration in the Korea-Japan battery market is relatively high,” adding, “With the ‘three-way war’ between Korea, China and Japan continuing in the global battery field, it is difficult for other countries to catch up with China’s superiority in the supply chain.” reported.

(Beijing = News 1)

Source: Donga

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