Lithium carbonate demand in South Korea to increase
----Interview with Sangwoong Lee
Sales&Purchasing General Manager
Jae Young Tech
Established in 2016, Jae Young Tech started lithium carbonate production in 2017. As the only battery grade lithium carbonate 99.5%min producer in South Korea at present with an annual production capacity of 1,200t, the company’s output in 2022 recorded about 500t. It plans to enlarge output to around 1,200t in 2023. The company will establish a battery recycling joint venture in North America with LG at the end of 2023.
Asian Metal: Welcome to Asian Metal’s interview, Mr. Lee. Please introduce your company and main business briefly.
Mr. Lee: Established in 2016, Jae Young Tech (JYT) produces lithium carbonate in South Korea by recycling lithium battery scraps. We are the only battery grade lithium carbonate 99.5%min producer in South Korea now. We pursue low-cost and highly efficient manufacturing process to produce high value-added materials using low-cost battery scraps to minimize environment pollution.
Asian Metal: How about the production capacity and annual output of lithium carbonate in South Korea in 2022?
Mr. Lee: As far as I learnt, South Korea’s lithium carbonate production capacity and output in 2022 were around 2,500t and 1,200t respectively. South Korea’s lithium products supply relies on import. To be more exact, South Korean mainly imports lithium carbonate from Chile and lithium hydroxide from China. In 2022, the lithium carbonate and hydroxide import volumes of South Korea from China and Chile accounted for 64% and 31% of its total import volume of these two products.
Asian Metal: What's your prediction of the lithium carbonate output in South Korea in 2023?
Mr. Lee: I foresee an output of around 2,000t of lithium carbonate in South Korea in 2023. The lithium carbonate market in South Korea witnesses insufficient supply at present. I believe this situation will continue in the coming few years. South Korean companies increased investments to develop mineral deposits and tried to sign more offtake contracts in order to increase supply over the past years. In my opinion, the recycling companies will play more important roles in the South Korean lithium carbonate market in the coming years.
Asian Metal: How about the current consumption capacity of lithium carbonate in South Korea?
Mr. Lee: In this Q1, the declining prices depressed the lithium carbonate demand in South Korean market. But the demand picked up slowly in Q2 and Q3. South Korean lithium battery producers’ lithium carbonate consumption capacity in 2023 would record at around 175,000t. The consumption capacity is supposed to climb by around 6 times till 2030.
Asian Metal: How about the price trend of lithium carbonate prices in South Korea so far this year?
Mr. Lee: Dragged by softened demand from new energy vehicle industry, the lithium carbonate prices in South Korea dropped from January to April. The South Korean lithium carbonate market witnessed increasing demand since May. The lithium carbonate prices turn to steady since mid-June but dropped again in August and still showed downtrend over the past two months. The current prices hover at around USD30-35/kg.
Asian Metal: What do you see as the major challenge of the South Korean lithium carbonate market?
Mr. Lee: I see the rapidly growing demand but unstable supply as the major challenge of the South Korea lithium carbonate market. The South Korean lithium carbonate market would see insufficient supply since 2025. South Korean companies will have to strive for long-term and sustainable lithium supply.
Asian Metal: Are you confident about the South Korean battery industry?
Mr. Lee: Yes, I hold an optimistic attitude towards the South Korean battery industry. As far as I learnt, South Korean’s lithium battery output in 2022 recorded around 39GWh. I predicted that the South Korea’s battery output in 2023 would move up YoY. Following the development of the new energy vehicles industry, I believe the South Korean lithium battery output would keep increasing in the coming 3-5 years. Some organizations forecasted that the lithium carbonate demand in South Korea would climb to about 314,000t in 2025 and 749,000t in 2030. I agree with this prediction.
Asian Metal: What's your company's development plan in the coming 2-3 years?
Mr. Lee: We plan to establish new plant to meet the increasing demand from consumers. We would establish a battery recycling joint venture in North America at the end of 2023. Jae young tech will be responsible for works of technology-related parts such as factory design. LG Chem will be in charge of business model establishment. We plan to develop our business by cooperating with local companies that have secured supply chains in North America. In the future, Jae young tech will advance eco-friendly waste battery recycling technology and entry into global market including Europe. We will strive to build a virtuous circle of battery resources and achieve the goal of net zero emissions.
Asian Metal: Thanks for your excellent sharing! Wish you every success in your business!
