35% of Auto Parts Imports Come from China
The Korea Automobile Manufacturers Association announced on June 14 that Chinese auto parts accounted for 34.9 percent of South Korea’s auto parts imports in 2021 whereas the ratio stood at 1.8 percent in 2000. The ratio of Japanese auto parts fell from 45.5 percent to 11.6 percent in that period.
“When it comes to electric vehicle components, Chinese anode materials’ ratio amounted to 83 percent last year and those of cathode materials, electrolytes and separators exceeded 60 percent each,” it said, adding, “In addition, South Korea’s reliance on graphite, manganese, cobalt, nickel and lithium from China amounted to 100 percent, 93 percent, 82 percent, 65 percent and 59 percent, respectively.”
Such high levels of dependence have already caused a series of production halts. For example, airbag control unit supply was halted in April this year due to COVID-19 shutdowns, affecting Gwangju Global Motors. Hyundai Motor Co. and Kia had to reduce their production for a wiring harness supply-related problem. They had to pause production when the same occurred in 2020.
The lopsidedness is not a problem limited to South Korea. From 2000 to 2021, the ratio of China’s exports to the global total exports rose from 3.9 percent to 15.3 percent. The association and the European Automobile Manufacturers Association had a meeting on May 12 in order to reduce their dependence on Chinese electric vehicle components.