The role of ‘No. 1 salesman’ for batteries
Published: 16 Oct. 2024, 19:49
Updated: 16 Oct. 2024, 19:57
President Yoon presented himself as “Korea’s No. 1 Salesman” during his visit to the Middle East last year, raising high expectations among Korean export companies. However, there are doubts about whether that role has been sustained until now. Korean battery companies are currently facing challenges due to policy uncertainties in the United States. Since the implementation of the Inflation Reduction Act (IRA) in 2022, subsidies for local battery production have been strengthened, leading the three major Korean battery companies to invest billions of dollars every year in the U.S. market.
With the U.S. presidential election approaching, concerns have risen of the IRA being repealed. This is a critical moment for the role of the No. 1 Salesman. The Korean government should engage in proactive outreach to both the Republican and Democratic parties to emphasize the importance of the battery industry.
First, it is necessary to convey the message from the perspective of U.S. national security. Currently, China is leading the battery industry, followed by Korea and Japan. If China’s influence continues to grow, it will be impossible to prevent its dominance in the future industrial competition.
Batteries are expanding their application beyond electric vehicles to include ESS (energy storage systems) and other key future industries. Demand for ESS batteries is surging to meet the expansion of data centers driven by the growth of the AI industry.
It is crucial to communicate that maintaining support policies for the battery industry is essential to build a U.S. manufacturing base on the foundation of Korean companies’ technology to ensure competitiveness in future industrial dominance.
Second, it should be emphasized that the battery industry is a key component for improving the U.S. power grid infrastructure. Expanding the deployment of ESS based on battery systems is the most effective solution for improving grid stability and enhancing the efficiency of eco-friendly power generation.
Third, job creation should be focused. The Korean battery industry aims to build production facilities that exceed five times the domestic production capacity by 2027, creating more than 100,000 high-quality jobs.
The Korean government must take the lead in conveying these arguments to the U.S. political circles to support the domestic battery industry. Our battery companies, which are struggling through difficult market conditions, need the active role of Korea’s No. 1 Salesman to ensure they are not swayed by policy changes in the crucial U.S. market.
Cho Dae-hee, a master’s student at the KAIST Graduate School of Innovation & Technology
With the U.S. presidential election approaching, concerns have risen of the IRA being repealed. This is a critical moment for the role of the No. 1 Salesman. The Korean government should engage in proactive outreach to both the Republican and Democratic parties to emphasize the importance of the battery industry.
First, it is necessary to convey the message from the perspective of U.S. national security. Currently, China is leading the battery industry, followed by Korea and Japan. If China’s influence continues to grow, it will be impossible to prevent its dominance in the future industrial competition.
Batteries are expanding their application beyond electric vehicles to include ESS (energy storage systems) and other key future industries. Demand for ESS batteries is surging to meet the expansion of data centers driven by the growth of the AI industry.
It is crucial to communicate that maintaining support policies for the battery industry is essential to build a U.S. manufacturing base on the foundation of Korean companies’ technology to ensure competitiveness in future industrial dominance.
Second, it should be emphasized that the battery industry is a key component for improving the U.S. power grid infrastructure. Expanding the deployment of ESS based on battery systems is the most effective solution for improving grid stability and enhancing the efficiency of eco-friendly power generation.
Third, job creation should be focused. The Korean battery industry aims to build production facilities that exceed five times the domestic production capacity by 2027, creating more than 100,000 high-quality jobs.
The Korean government must take the lead in conveying these arguments to the U.S. political circles to support the domestic battery industry. Our battery companies, which are struggling through difficult market conditions, need the active role of Korea’s No. 1 Salesman to ensure they are not swayed by policy changes in the crucial U.S. market.
Cho Dae-hee, a master’s student at the KAIST Graduate School of Innovation & Technology
with the Korea JoongAng Daily
To write comments, please log in to one of the accounts.
Standards Board Policy (0/250자)