South Korea was reliant on imports for over 70% of precursors for battery materials, a market research firm said.
China will be responsible for 75.8% of production for precursors this year, QY Research said. South Korea will rank second with 13.9%, followed by Japan with 9.7%.
Precursors are used to make cathode materials.
A total of 360,000 metric tonnes of precursors for NCM batteries will be produced this year, the research firm said, down 3% from 2019.
In precursor consumption, China will account for 42.4%, followed by South Korea’s 41.5%.
Out of the total precursors used by South Korean companies, only 30% was made within the country, with the rest being imported. Out of the imports, 90% came from China, QY Research found.
A total of 75,672 metric tonnes of precursors will be imported this year to South Korea.
Though South Korea is increasing local supply of precursors, it will continue to rely on imports for them going forward, QY Research said.
China’s precursor companies combined has a production capacity of 500,000 metric tonnes, the research firm said, and stressed there was a need for South Korea to increase its self reliance for material for supply chain stability.