South Korea Electric Vehicle Battery Materials Refining Plant Development Feasibility Study with EV Supply Chain Outlook

Executive Viability Abstract

This study assesses the feasibility of establishing a high-purity lithium and nickel refining plant in South Korea. Given the nation's dominant position in the global battery manufacturing landscape (LG Energy Solution, SK On, Samsung SDI) and the shifting geopolitical requirements of the US Inflation Reduction Act (IRA), localizing the precursor supply chain is both strategically and economically viable. The project aims to reduce dependence on Chinese imports while capitalizing on the Free Trade Agreement (FTA) status between South Korea and the United States.

## Market Analysis South Korea currently imports over 80% of its precursor and refined mineral materials from China. The US IRA mandates that a significant portion of battery minerals must be extracted or processed in the US or an FTA-partner country to qualify for tax credits. This creates a massive demand gap for non-Chinese refined minerals. The global EV battery market is projected to reach $250B by 2030, with South Korean manufacturers holding approximately 25-30% of the market share. ## Technical Feasibility The plant will utilize advanced hydrometallurgical extraction processes to refine spodumene concentrate into battery-grade Lithium Hydroxide (LiOH) and Nickel-Cobalt-Manganese (NCM) precursors. The facility will be located near Ulsan or Pohang to leverage existing industrial infrastructure and port access. Waste heat recovery systems and closed-loop water treatment will be integrated to meet ESG standards. ## Financial Projections Total CAPEX is estimated at $450M. Revenue will be driven by long-term offtake agreements with domestic battery majors. Estimated annual revenue at full capacity (20,000 tonnes LCE) is $750M based on conservative price forecasts. OPEX is projected at $420M annually, including raw material sourcing from Australian and South American mines. ## Risk Assessment Key risks include price volatility of lithium/nickel, geopolitical shifts in trade policy, and technical delays in commissioning. Mitigation strategies involve securing multi-year upstream supply contracts and partial equity investment from downstream customers.