South Korea, China, Japan buy 94% of global EV battery minerals
Asian EV battery makers lead global purchases despite temporary EV market slump
Asian battery manufacturers from South Korea, China, and Japan maintain a strong hold on the global battery mineral market despite a temporary slowdown in electric vehicle demand.
In the first quarter of this year, companies from these three countries accounted for 94% of global purchases of critical battery minerals. While China holds a significant advantage in securing overseas minerals with government support, South Korea remains over 90% dependent on China for critical materials such as precursors and graphite.
According to recent data from EV supply chain research firm Adamas Intelligence, $3.01 billion (about 4.12 trillion won) worth of battery metals were used in newly sold electric vehicle battery packs worldwide in the first quarter.
Battery manufacturers headquartered in South Korea, China, and Japan accounted for about 94% of this raw material spending. China led with $1.635 billion, or 54.31%, followed by South Korea with $918 million (30.50%) and Japan with $277 million (9.20%). The top four companies including China's CATL and BYD, South Korea's LG Energy Solution and Japan's Panasonic made up two-thirds of total purchases.
In the battery market, South Korean and Japanese firms specialize in NCM (nickel, cobalt, manganese) batteries, while Chinese companies dominate lithium iron phosphate (LFP) batteries. However, China has nearly monopolized the LFP market and is quickly catching up to South Korean and Japanese firms in NCM battery technology.
The gap is even wider in securing raw materials. A July 2024 survey by the Korea Chamber of Commerce and Industry showed that among the three countries, China holds stakes in 407 mines producing lithium, nickel and cobalt, the three key minerals that make up half the cost of cathode materials. Japan has stakes in 31 mines and South Korea in 15. China's state-owned enterprises have aggressively secured major mining assets overseas, especially in Africa, while Japan relies on partnerships between private trading companies and state-backed firms to obtain mineral resources.
Batteries News
https://batteriesnews.com/south-korea-china-japan-buy-94-of-global-ev-battery-minerals/
