South Korean EV battery manufacturers to invest $35 billion by 2030
With an aim to become a major global force in electric vehicle (EV) battery sector and better compete with the likes of Japan and China, South Korea has revealed plans to invest 40.6 trillion won (US$35 billion) in its EV battery industry by 2030.
Government officials also revealed that LG Chem.’s LG Energy Solution Co., Samsung SDI Co., and SK Innovation Co. will play key roles in boosting the country’s EV battery capacity. These three manufacturers will pump significant amounts of money in research & development (R&D) as well as battery production.
LG Energy Solution Co., Samsung SDI Co., and SK Innovation Co. have already quadrupled their battery production capacity between 2016 and 2020. As per available information, the three companies have increased their combined annual manufacturing capacity from 59 GWh in 2016 to 217 GWh in 2020. Now, these companies are trying to push their capacities to even higher levels.
President Moon Jae-in-led South Korean government stressed that incentives would be provided to manufacturers to help them become global leaders in the EV battery space.
President Jae-in’s administration said in a statement, “The plan is to ensure that incentives are provided to companies for their investments and R&D to help them become global leaders in the battery market. The government will make all efforts to support and grow this industry, which will be a vital part of the country’s future economy.”
Amid increasing craze for EVs, more and more manufacturers are shifting their focus from internal combustion engines (ICEs) to battery-powered vehicles, boosting demand for battery packs. In a bid to capitalize on the trend, South Korean government wants its manufacturers to expand their battery production capacities.
Moreover, South Korea is trying to cut its carbon footprint. Last year, it set a deadline to become carbon neutral by the end of 2050. It has set aside 42.7 trillion won to fund the “Green New Deal,” which aims to provide a much-needed boost to low-carbon power sources and promote green industries as the country aims to triple its renewable energy production by 2025.
In the first five months of 2021, South Korean battery manufacturers accounted for around a third of the EV battery market. It looks great but the South Korean manufacturers are lagging far behind Japanese Chinese manufacturers. China’s battery manufacturer Contemporary Amperex Technology Co. Limited (CATL) alone holds a 31 per cent share in the EV market.
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