It has been reported that China, which has implemented export controls on graphite, a key material for battery cathodes, since December of last year, has granted permission for the export of graphite to major battery companies in South Korea. However, there remains the possibility of further tightening export controls on essential mineral resources, including graphite, by China in the future. This is considering potential deterioration in U.S.-China relations and other factors.
According to industry sources on Jan. 14, the Chinese government approved the export of synthetic graphite for cathode production to POSCO Future M, a battery material producer, in late December of last year. POSCO Future M is the sole domestic manufacturer of cathode materials for secondary batteries.
It is noted that the Chinese government has also granted approval for the export of finished cathode material products containing graphite to the three major South Korean battery companies -- LG Energy Solution, SK on, and Samsung SDI -- that produce complete battery products.
To prevent the exclusive use of battery materials for military purposes, the Chinese government has strengthened controls starting from Dec. 1 last year. It has added high-purity natural graphite for secondary battery cathodes to the list of controlled items and reinforced the process by individually reviewing and permitting export applications.
Industry insiders believe that China is not likely to immediately halt exports. However, there is a possibility that exports may be restricted in the future depending on changing circumstances, including the relationship between the United States and China.
Meanwhile, the battery prices are continuing to decline due to the slowdown in electric vehicle demand.
According to market research firm TrendForce, the price of lithium-ion battery cells for electric vehicles in China fell by 6 to 10% in December of last year compared to the previous month.