South Korean Government To Funnel KRW 20T In Battery Technology

The South Korean government and its top battery businesses plan to invest 20 trillion won ($15.1 billion) in advanced battery technologies, including solid-state batteries, through 2030, according to the industry ministry on Thursday.

"The joint investment will allow South Korea to start commercial production of solid state batteries ahead of others," the ministry said in a statement.

South Korea is home to three of the world's top five EV battery manufacturers: LG Energy Solution Ltd (LGES), Samsung SDI Co Ltd, and SK On.

The trio controls more than a quarter of the global EV battery market and supplies key manufacturers including as Tesla Inc., Volkswagen AG, General Motors Co., and Ford Motor Co.

According to the ministry, the three battery companies will construct pilot production units in South Korea to serve as product and manufacturing innovation centres.

Before mass production from their overseas production sites, the plants will be utilised to test and manufacture sophisticated products such as solid state batteries, cylindrical 4680 cell batteries, and cobalt-free batteries.

EV battery manufacturers are racing to create new battery technologies that offer greater driving range, more energy density, and improved safety over traditional lithium-ion batteries.

With the investment, South Korea aims to treble domestic cathode material manufacturing capacity and triple exports of battery production-related equipment, according to the industry ministry.

The initiative comes after the government announced earlier this month a 7 trillion won financial support plan for local battery companies looking to invest in North American infrastructure to help them cope with the US Inflation Reduction Act.