S. Korea to invest 2 tln won by 2030 in advanced secondary battery development
The planned investment by the government and major battery makers combined, including LG Energy Solution Ltd., Samsung SDI Co. and SK On Co., aims to secure «super-gap» technologies to lead the global market by mass-producing solid-state batteries in around 2027 and rolling out advanced lithium iron phosphate products, according to the Ministry of Trade, Industry and Energy.
It is part of the country's long-term strategy meant to enhance competitiveness of the domestic secondary battery sector, which was presented during an emergency economic meeting presided over by President Yoon Suk Yeol.
Under the plan, the three major battery makers will establish their respective «mother factory,» or a hub of cutting-edge technology development, research, production and other core functions at home.
They will also build a factory for manufacturing prototype solid-state batteries in South Korea, according to the ministry.
Solid-state batteries are considered a next-generation cell that aims to significantly reduce fire risks and increase battery life.
To support technology innovation, the government plans to launch large-scale R&D projects for developing a solid-state battery for automobiles, lithium metal batteries and other new items.
It also vowed to ramp up support for companies producing materials, components and equipment for batteries through policy financing worth 500 billion won for corporate R&D efforts.
Those making an investment at home will receive greater tax benefits, and companies that process minerals will also enjoy tax incentives. Currently, tax deduction is reserved for firms dealing with high-nickel layered oxide cathode materials.
By doing so, the country is expected to see equipment exports related to the battery field more than triple to $3.5 billion in five years and the domestic production of cathode materials surge to 1.58 tons from the current 380,000 tons, the ministry said.