This file photo shows an exhibition on batteries held in Seoul on March 17, 2022. (Yonhap)
SEOUL, Nov. 1 (Korea Bizwire) — South Korean battery firms will invest a combined more than 50 trillion won (US$35.24 billion) at home by 2030 to secure advanced technologies in the secondary battery field, a move that could to make the country the world’s No. 1 player with a market share of over 40 percent, the industry ministry said Tuesday.
For the goal, the government launched a “battery alliance” with major firms to boost cooperation on securing key minerals in preparations for supply disruptions amid heightened global uncertainties, according to the Ministry of Trade, Industry and Energy.
The plan was announced during a meeting among Industry Minister Lee Chang-yang and senior officials of major related firms, including Hyundai Motor Co., Samsung SDI Co., SK On Co., LG Energy Solution Ltd. and POSCO Chemical Co.
During the first six months of this year, South Korea accounted for 25.8 percent of the global secondary battery market after China with 56.4 percent of the market share.
Japan came third with a 9.6 percent market share, according to government data.
Under the plan, the South Korean companies will invest 19.5 billion won by 2030 for research and development projects to secure key industries and diversify their portfolio.
An additional 30.5 trillion won will also be spent for facility investment at home, according to the ministry.
The investment is expected to boost the domestic production capacity for batteries to 1.5 times the amount by 2025 and more than double the capacity for battery materials.
A visitor takes a photo of Ferrari’s SF90 Stradale powered by South Korean battery maker SK On Co.’s product at InterBattery 2022, an international exhibition on rechargeable batteries, at COEX in Seoul on March 17, 2022. (Yonhap)
The government will earmark 1 trillion won for R&D projects for advanced technologies by 2030, and extend loans and tax benefits to support business activities.
It will also extend financing worth 3 trillion won over the next five years for efforts to secure stable supply chains of minerals and related projects, the ministry said.
South Korea also seeks to devise an integrated system to better manage used batteries and to nurture the battery recycling sector.
The government will nurture around 16,000 skilled workers in the sector by establishing a “battery academy” and extending college education programs, it added.
“Uncertainty has grown in the industry as major nations are reshaping global supply chains by focusing on their own nations. But this crisis could serve as a chance for growth,” Minister Lee said, calling for joint strategic responses between public and private sectors to market changes.
(Yonhap)
