Exports of Chilean lithium salts in January-July suggest shifting trade flows in the battery materials supply chain as Chile faces increasing demand from South Korea and Japan while Chinese demand slows.
China has historically been Chile's biggest lithium buyer, importing 667,681 metric tonnes (t) of Chilean lithium salts since January 2018. South Korea came in second at 313,495t bought in the same period. In the past seven months, however, South Korea increased its buying activity by 42.3pc on the year, while China scaled back imports by 16.6pc.
The trend was highlighted by South Korea's record imports for Chilean lithium chemicals in July at 8,699t, a 159pc increase on the year and almost double sequentially from June. It also consecutively grew its monthly share of total lithium purchased from Chile from 13.6pc in March — its lowest on the year — to an all-time high 36.5pc in July, while China went from a year-high of 72.2pc to 57.2pc in the same period.
Japan, Chile's third-largest lithium buyer, hiked its buying activity in January-July by 191.2pc, increasing acquired amounts of Chilean lithium salts from 3,241t in the first seven months of 2024 to 9,438t in the same period this year.
Even though China remains a major buyer of lithium salts from Chile because of internal demand from its domestic electric vehicle (EV) market, its lithium imports are universally down. US tariffs and growing global competition from non-Chinese battery manufacturers — who are less impacted by Donald Trump's trade policies — are taking a toll on China's demand for lithium as clients look for cheaper batteries.
The country has had decreasing demand for its processed lithium hydroxide and for its EV batteries, which have been particularly impacted by the United States' — by far China's largest buyer of EV batteries — updated 58.4pc tariff on the product.
South Korea's battery materials market grows on tariffs
South Korea was hit with a lesser 15pc levy by the US, which boosted US demand for its batteries and finished EVs, in addition to spurring general interest in its lithium hydroxide.
The country has consecutively broken its export record for electric vehicles in the past three months, according to customs data. Its domestic EV market has also been growing in 2025, posting a 29pc over-the-year increase in sales from January-June.
Demand for South Korean lithium hydroxide was more than five times higher in the first half of 2025 compared with the same period last year on the back of the Posco conglomerate, which completed a 43,000t/yr hydroxide plant late last year. The joint venture signed a supply agreement with South Korean battery maker SK On in 2024 to provide 15,000 t/yr of domestically produced lithium hydroxide. SK On provides batteries for US-made Ford, Volkswagen, Hyundai, Kia and Genesis vehicles.
With the US' tariffs set to persist until at least January 2029 — the end of Trump's term — Chile could further decouple from China and have a more diverse clientele, with South Korea having the potential to become a China-like battery powerhouse in the future.
Although this trend could be replicated globally, South American lithium producers are more prone to it, since none are currently entangled with China, like Australia and African spodumene producers.
South Korea has also been buying increasing amounts of lithium salts from Argentina, where Posco recently opened a brine-based lithium mine and a hydroxide refinery. The Asian nation imported 3,601t of lithium chemicals from Argentina in January-June, up 43pc on the year, according to South Korean customs data.
| Chilean Li imports by South Korea and China | metric tonnes | ||
| Month | Amount imported | YoY ± | Market share |
| South Korea | |||
| Jan-25 | 5,283 | 11.5% | 19.2% |
| Feb-25 | 2,989 | 0.7% | 17.9% |
| Mar-25 | 3,126 | 12.7% | 13.6% |
| Apr-25 | 3,895 | 21.9% | 15.9% |
| May-25 | 4,598 | 16.6% | 27.1% |
| Jun-25 | 4,545 | 96.8% | 26.8% |
| Jul-25 | 8,699 | 159% | 36.5% |
| China | |||
| Jan-25 | 19,122 | 94.7% | 69.6% |
| Feb-25 | 12,040 | -25% | 71.9% |
| Mar-25 | 16,595 | 3.1% | 72.2% |
| Apr-25 | 15,545 | -32.1% | 64% |
| May-25 | 9,655 | -46.5% | 56.9% |
| Jun-25 | 10,226 | -41.2% | 60.3% |
| Jul-25 | 13,638 | -13.4% | 57.2% |
| Chilean customs data | |||
