South Korea to reduce dependence on other countries for key materials by 2030

South Korea plans to reduce its reliance on countries such as China when it comes to sourcing materials - including critical minerals such as graphite and rare earths - to avoid potential supply chain disruptions

The country’s Ministry of Trade, Industry & Energy said it wants to reduce its dependence on specific countries to less than 50% for 185 items by 2030, down from 70% in 2022. The list includes semiconductors, secondary batteries and 29 ferrous and non-ferrous metals, among other things.

The move will help South Korea build a stabilized and robust industrial supply chain, industry minister Bang Moon-kyu said on Wednesday December 13, while visiting Posco’s Future M plant at Sejong, which is the country’s only production facility processing natural graphite for battery anodes.

The country depends on China for 94% of its natural graphite supplies, according to data from the ministry. Based on its official customs data, 86% of rare earth permanent magnets and 97% of precursors for ternary batteries were imported from China from January to October this year.

The country plans to build its own production facilities for nickelcobaltmanganese (NCM) precursors, while seeking foreign investment and encouraging local companies to relocate their overseas production facilities to South Korea.

South Korea expects to produce around 332,000 tonness of NCM precursors by 2028 and LG Chem starting construction of a $909 million NCM precursor production facility in the Saemageum Industrial Complex in southwest Seoul this year. 

South Korea also plans to increase its lithium and cobalt inventories to ensure it has 100 days of supplies by 2031 as part of its newly announced $29 billion financial package for the domestic battery materials industry.

The financial aid will also be used for investments in manufacturing production facilities in North America so that companies can benefit from measures implemented under the US Inflation Reduction Act.

The South Korean government also plans to establish new safety regulations on the removal, storage and transportation of used batteries within the country, while estimating that it could secure enough minerals available for an equivalent of 170,000 electric vehicles per year if it recycled all its used batteries

Want more insights and forecasts for the battery recycling and black mass market?

Keep up to date with global market insights and predictions for the battery recycling market with the Fastmarkets Battery Recycling Outlook.

What to read next
Fastmarkets’ SBQ price assessments and monthly forecast provide much-needed clarity and a benchmark for buyers in the steel industry to use for planning and negotiation.
The Detroit, Michigan-based automotive giant General Motors (GM) and the Carson City, Nevada-based lithium batteries recycler Redwood Materials announced on Wednesday July 16 that they have agreed to build energy storage systems (ESSs) using both new and recycled batteries.
India’s ferrous scrap imports have rebounded in early 2025 but remain vulnerable due to competitive domestic DRI prices and shifting sourcing strategies by steelmakers. While near-term demand is subdued, long-term prospects depend on evolving supply chains and policy decisions.
Global aluminium producer Alcoa has already diverted 100,000 tonnes of Canadian metal away from the US market in response to uncertainty about import tariffs with trade measures continuing to upend traditional trade flows and pushing the company to rethink its global supply strategy, its chief executive officer said.
In a move received with optimism from industry experts, the One Big Beautiful Bill allocates billions in federal funding to bolster the US critical minerals sector through multiple venues, signaling strong government support for domestic production and supply chain resilience. Market participants expect the demand effect from the introduction of timelines on 45X and repealing of 30D credits to be limited.
Despite falling prices, three Brazilian lithium plants – owned by Sigma Lithium, Companhia Brasileira de Lítio (CBL) and AMG Lithium – are seeking to expand their operations in the coming years, in order to become more competitive in the global market, Fastmarkets heard during the “Lithium Business Brazil” event held July 8-10 in the state of Minas Gerais.