South Korea plans to invest 40.6 trillion won ($ 35 billion) in electric vehicle batteries by the end of the decade to secure its place as one of the largest global powers in the sector and compete with dominant China and Japan.
LG Energy Solution, SK Innovation and Samsung SDI will be key players in stimulating investment in R&D and battery manufacturing, the Seoul
“The plan aims to provide incentives for companies to invest and research and develop to help them become global leaders in the battery market. The government will make every effort to to support and develop the industry, which will be a vital part of the country’s future economy, ”Bloomberg quoted the statement as saying.
South Korea is one of the world’s largest producers of electric car batteries. In the first five months of this year, they covered a third of the global market, but companies are also looking to expand their facilities overseas to help meet the growing demand for electric cars. South Korean generation capacity is said to have nearly quadrupled from 59 GWh in 2016 to 217 gigawatt-hours by 2020.
However, China’s Contemporary Amperex Technology alone accounted for 31 percent of battery sales until May this year, according to SNE Research. Market research firm expects global battery market turnover to grow from $ 46 billion last year to about $ 352 billion by 2030.
LG Energy announced in a statement that it plans to invest 15.1 trillion won by 2030 , of which 9.7 trillion will be spent on R&D. In South Korea, he is building a new institute for training in battery technology, which is expected to be completed by January 2023. The company also said it has an order backlog of more than 180 trillion won of EV batteries.
The government of President Moon Jae-in has announced that it will support companies developing next-generation products, including solid state batteries. An 80 billion won fund will help small and medium-sized businesses strengthen the supply of materials and components needed to manufacture batteries. The fund will be contributed by the government, financial institutions and the three battery manufacturers. South Korea also plans to develop its used battery industry
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