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
Despite the current headwinds, strategic partnerships and continued investment in the right areas, coupled with the underlying strong long-term demand fundamentals, will pave the way for success for lithium producers, according to the participants of the executive panel during the Fastmarkets Lithium Supply and Battery Raw Materials Conference, which took place from June 23-26 in Las Vegas, Nevada.
The US needs well-defined and stable policy around critical minerals, energy transition and trade, while derisking projects and maintaining good relations with other countries to be able to establish sustainable electric vehicle (EV) and energy storage systems (ESS) supply chains in North America, according to industry experts.
The US and Europe must adopt long-term, consistent policies and should learn lessons from China, according to lithium industry experts speaking at Fastmarkets’ Lithium Supply and Battery Raw Materials Conference in Las Vegas, US, over June 22-25.
Producers in Arkansas' Smackover Formation are advancing lithium extraction projects following recent regulatory approvals. Supported by oil and gas expertise and state incentives, the region is positioning itself as a key player in the US lithium supply chain.
Battery recyclers remain under pressure, with tight margins among black mass producers and refiners amid a host of challenges for the industry, according to delegates at Fastmarkets Lithium Supply and Battery Raw Materials Conference 2025, which took place in Last Vegas, Nevada, from June 23-26
The 2025 Fastmarkets Lithium Conference in Las Vegas highlighted critical issues shaping the battery supply chain, including lithium oversupply, funding struggles and the need for midstream investment. Discussions also emphasized the importance of interdependence with China and the challenges faced by recyclers amid policy uncertainty and market headwinds.