Concerns have been raised that China's dominance in the battery supply chain could pose a security threat to the United States and its allies. A recent report from the Atlantic Council, a U.S. think tank, argues that the U.S. and South Korea must enhance their cooperation across mining development, refining, and battery manufacturing.
According to the report titled "The U.S. and South Korea Must Collaborate to Counter China's Dual-Use Battery Dominance," the China-centric global battery supply chain presents significant military and economic risks to the U.S. and its allies. The report highlights that batteries are a key dual-use technology, utilized not only in electric vehicles and energy storage systems (ESS) but also in military applications such as drones, robots, unmanned underwater vehicles, and intelligence, surveillance, and reconnaissance (ISR) systems. It notes that China has gained overwhelming competitiveness in battery production and critical mineral refining, thereby expanding its influence over the global supply chain.
The report emphasizes the importance of maintaining South Korea's competitiveness as the world's second-largest battery powerhouse. While Chinese companies like CATL and BYD are increasing their global influence, South Korean battery firms face complex challenges, including changes in U.S. electric vehicle subsidy policies and intensified competition in the European market.
The Atlantic Council suggests that the U.S. and South Korea should establish a comprehensive cooperation framework across the entire supply chain. This includes joint investments in securing minerals, refining, material production, and battery manufacturing.
Additionally, the report identifies the relatively overlooked refining sector as a critical element for securing supply chain competitiveness. Although efforts are underway to build a battery supply chain in the U.S., there remains a significant gap in processing and refining capabilities for critical minerals.
The report recommends leveraging battery research and development programs supported by the U.S. Department of Defense and the Export-Import Bank of the United States to expand the participation of South Korean companies. It specifically mentions Korea Zinc and suggests that linking their refining capabilities with the U.S. supply chain could enhance both commercial viability and strategic importance.
Korea Zinc has recently begun expanding its business in secondary battery materials and critical mineral recycling, indicating it may play a key role in future U.S.-South Korea supply chain cooperation.
The Atlantic Council warns that if China secures a monopolistic position in the global battery supply chain, it could significantly impact the military and economic leadership of the U.S. and its allies. It stresses the need for the U.S. and South Korea to strengthen cooperation at all stages of the supply chain and minimize unnecessary trade barriers among allies.
* This article has been translated by AI.
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