Interesting post from the CEO of the Australia-Korea Business...

Interesting post from the CEO of the Australia-Korea Business Council on the new $10b fund the Korean government has established to diversify its leading battery manufacturers graphite supply chain from its current over reliance on China and potential upstream investments into Australian suppliers. Renascor is tagged into the post and comes as no surprise given DC’s ongoing engagement in the Korean market for a while now.

Apologies for the formatting while I’m on the road. Link to article is here as well FYI

https://www.koreaherald.com/view.php?ud=20240512050145


Critical minerals and their supply chains are once again making headlines in Korea, particularly with a renewed focus on the urgent need for diversification. The top three Korean battery manufacturers—

Samsung SDI, LG Energy Solution, and SK On—are breathing a sigh of relief following the U.S. decision to delay the ban on Chinese graphite for its EV tax credit until 2027. This extension is pivotal for these companies, allowing them more time to adjust their supply chains without immediate disruption.

Graphite, crucial for manufacturing electric battery anodes, is at the center of Korea's strategic concerns due to its heavy reliance on imports from China, which currently dominates about 70 percent of the global graphite production. In response, the Korean Trade Ministry has unveiled a substantial support program valued at 9.7 trillion won (~AUD$10.7 billion). This initiative aims to assist domestic battery manufacturers in securing new graphite suppliers outside of China over the next two years.

The program includes financial, tax and infrastructure assistance as well as support to facilitate corporate partnerships. The urgency for Korean battery makers to diversify their graphite sources creates significant opportunities for Australian producers and companies with global graphite projects. Notably, both Samsung SDI and POSCO Future M have already signed agreements with Australian-based Syrah Resources Ltd, signaling the beginning of a trend towards more diversified supply chains. However, the critical step forward is to encourage Korean companies to become early investors in these upstream resources. By securing their supply chains early, they can mitigate future risks associated with raw material shortages and geopolitical tensions.To effectively diversify their supply chains, Korean companies need to adopt a proactive and strategic approach to investment. This requires patience, a long-term view, and collaborative efforts with international partners.

This is a significant opportunity for Australia - we can help Korean companies not only secure their raw material sources but also strengthen their competitive edge in the global market. Working closely with Korean investors to facilitate these transitions will be key to achieving a stable and diversified supply chain for critical minerals like graphite.#critical minerals #supply chains #graphite #batteries #EVhttps://lnkd.in/g2hg5HwgRenascor Resources Limited EcoGraf Limited (ASX:EGR, FSE:FMK, OTCQB:ECGFF) Battery Mineral Resources Corp. International Graphite (ASX:IG6) Lincoln Minerals Ltd Mineral Resources Limited Quantum Graphite Limited Talga GroupMinerals Council of Australia Namali Mackay Critical Minerals Association Australia The Chamber of Minerals and Energy of Western Australia Posco International Corporation