South Korea Might Construct Lithium Reserves to Support Battery Sector
South Korea has began constructing its lithium inventories to safe provides of the important mineral that’s essential for its battery and auto manufacturing industries.
The nation has already purchased some lithium carbonate, a refined type of the battery materials utilized in EVs, this 12 months from Chile through state-controlled Korea Mine Rehabilitation and Mineral Sources Corp. (KOMIR), stated two individuals acquainted with the matter, who weren’t licensed to talk publicly.
The federal government has now allotted 233.1 billion received ($171 million) to safe important minerals for growth of the nation’s cutting-edge applied sciences, in response to one other particular person with data of the matter. It plans to spend most of it on constructing its lithium reserves for electric-car batteries in an effort to counter potential shortages amid heightened geopolitical tensions, the particular person stated.
The funds, which marks a 526% leap from the final 12 months’s, is predicted to be deployed throughout 2024, in response to the particular person.
KOMIR declined to remark when reached by telephone.
South Korea’s stockpiling technique comes at a time when lithium costs have struggled to rebound from a pointy plunge final 12 months. Authorities are additionally striving to make sure home corporations can keep competitiveness within the US by assembly the necessities of the Inflation Discount Act.
President Joe Biden’s signature laws, enacted in 2022, is meant to scale back reliance on China – which nonetheless dominates the processing of essential battery supplies together with lithium.
Costs of lithium rallied to a document excessive in late 2022 as the worldwide push towards an electrified transport fleet fired up consumption, whereas provides struggled to maintain tempo. Automobile and battery producers had been scrambling to safe offtake or growth offers to lock in lithium.
Since then, EV demand progress has been weaker than anticipated, with battery makers together with LG Power Answer Ltd. and Samsung SDI Co. reporting smaller earnings final 12 months. In the meantime, an enormous wave of latest lithium provides additionally weighed on costs – which tumbled greater than 80% in 2023 and have but to see any significant restoration this 12 months.
South Korea’s commerce ministry unveiled a plan in March to speculate 241.7 billion received over the subsequent three years to construct warehouses for storage of important minerals, together with lithium, gallium and uncommon earths.
