Ministry of Trade, Industry and Energy

Trade, Industry and Energy Minister Bang Moon Kyu chaired the Industrial Supply Chain Strategy Meeting on December 13 at POSCO Future M, the sole producer of natural graphite anodes in Korea, where the Ministry of Trade, Industry and Energy (MOTIE) presented the Industrial Supply Chain Strategy for reducing the import dependence of critical supply chain items on the occasion of enforcing the special act for stabilizing MPE (materials, parts, equipment) industries and supply chains.

Considering the import reliance level, industry impact and other factors, the ministry selected 185 items with the goal of decreasing their import dependence levels on certain countries from the 2022 average of 70 percent to 50 percent by 2030.

To reach this goal, MOTIE will push 10 major tasks. It will strengthen whole-of-the-government supply chain response capacity; draw up item-specific crisis response scenarios and run cross-ministerial crisis response simulations. For self-reliance, MOTIE will review measures for supporting items of which domestic production offers low economic benefit; drastically increase R&D on critical items by 2030; and support strategic foreign investment and reshoring companies in advanced industries and supply chain areas. For diversification, MOTIE will prepare various schemes for accelerating the introduction of alternatives and uncover alternative suppliers, give across-the-board support for performance testing and preferential treatment of import insurance; and support M&As and the relocation of production plants to third countries.

In addition, the strategy intends to drastically increase the amount of reserves for critical minerals like lithium; give increased assistance for special loans and tax credit for overseas critical minerals projects; and actively support the development of technologies for waste rare earth magnet recycling and alternatives like silicon anodes.

To note, anchor projects on eight critical items, including urea and secondary batteries’ cathodes and anodes, will be designated to provide comprehensive support via three major supply chain policies aimed at achieving self-reliance, diversification and securing of resources.

Minister Bang stated that “the strategy is for building a resilient supply chain through intensive care of the particularly critical 185 items.”