Korea to commit $15 billion to EV battery making

Industry

Published: 20 Apr. 2023, 17:30 Updated: 20 Apr. 2023, 17:35

Korea to commit $15 billion to EV battery making

President Yoon Suk Yeol speaks during an emergency economic meeting on a natioanl battery strategy at the Blue House Yeongbinkwan state guest house in central Seoul on Thursday. [JOINT PRESS CORPS]

Korea will pour 20 trillion won ($15.1 billion) into developing the world's first solid-state battery for electric vehicles (EVs) by 2030, the Industry Ministry said on Thursday during an emergency economic meeting presided over by President Yoon Suk Yeol.

The three largest battery makers in Korea — LG Energy Solution, Samsung SDI and SK On — will establish production facilities in Korea with the most advanced technologies, according to the government.

"Secondary batteries, along with semiconductors, are keys to digital transformation and are crucial security and strategic assets," Yoon said during the meeting.

The president also highlighted the importance of securing a stable supply of battery materials and components by diversifying the supply chain.

As the U.S. Inflation Reduction Act (IRA) subsidy program is reshaping the global EV battery supply chain with sourcing rules, Yoon said that "the collaboration between the government and the private sector will be essential in leveraging new opportunities created by the IRA."

The 16th Emergency Meeting on People's Livelihood Stabilization, held at the Blue House's Yeongbingwan state guest house in central Seoul, was attended by about 70 participants, including Finance Minister Choo Kyung-ho, Industry Minister Lee Chang-yang, Science Minister Lee Jong-ho, representatives from local battery and automobile companies and the chair and floor leader of the People Power Party.

LG Energy Solution CEO Kwon Young-soo, SK On CEO Jee Dong-seob, Samsung SDI CEO Choi Yoon-ho, Hyundai Motor CEO Chang Jae-hoon, Lotte Chemical CEO Kim Gyo-hyun and LG Chem CEO Shin Hak-cheol attended the Thursday meeting.

The latest battery initiative involves: developing the world's first solid-state EV batteries; beginning mass-production of lithium ferro-phosphate batteries for EVs in 2025; quadrupling the production capacity of cathode materials and tripling the export volume of battery equipment to $3.5 billion in 5 years; and establishing a domestic system where 100 percent of batteries are recycled by 2030.

The government and the private sector will jointly raise over 20 trillion won to secure industry-leading battery technologies by 2030, according to the Industry Ministry.

LG Energy Solution will complete the construction of the industry's first mass-production facility for "4680" cylindrical batteries — batteries introduced by Tesla that are 46 millimeters in diameter and 80 millimeters in height — at its Ochang plant in North Chungcheong in the first half.

The battery maker plans to produce solid-state batteries on a commercial basis by 2026.

SK On will establish a pilot production line for next-generation batteries next year and develop cobalt-free battery technology by 2025.

Samsung SDI is building a pilot production line for solid-state batteries at its research and development center in Suwon, Gyeonggi, which will be completed in the latter half. The goal is to establish a mass-production facility for solid-state batteries by 2027.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]