As China virtually monopolizes the lithium iron phosphate (LFP) market, South Korean battery-materials companies are stepping up development and mass production of cathode materials. In response to tighter US regulations, they are moving to diversify their supply chains.
China is estimated to hold nearly 90% of the LFP market, primarily controlling the supply of cathode materials. Meanwhile, South Korean battery-materials companies are stepping up their entry into the sector and are expanding their development and production capabilities, according to reports.
As the United States strengthens its policy of excluding China-made batteries from its supply chain, South Korean companies are developing systems aimed at diversifying their supply chains and spreading risk, with the goal of securing LFP materials domestically and overseas.
The development of lithium-based cathode-material technologies and progress toward mass production are expected, although reports provide limited details on the companies involved and the timing of progress. Further developments will be closely watched.