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With the global trend of digital transformation and increasing investment in environment-friendly sectors, the secondary battery industry is at the stage of lift-off. As the markets for IT devices and electric vehicles, which are main consumers of secondary battery, continue to expand, and as countries around the world implement energy transition for carbon neutral 2050, demand for ESS is expected to grow rapidly. As a result, the global secondary battery market is likely to grow 7.6 times from USD 46.1 billion in 2020 to USD 351.7 billion in 2030. In response, Korea continues to make investments and develop next-generation batteries to maintain global competitiveness in the fields of production and materials of secondary battery.
Next-generation growth engine of Korean economy
The strength of Korea’s secondary battery industry lies in the fact that it has a stable industrial ecosystem based on long-established experience in production. In the manufacturing field, three big companies including LG Energy Solution, Samsung SDI, and SK Innovation have secured global competitiveness. In the materials field, EcpPro BM, POSCO Chemical, L&F and others possess R&D capabilities and production facilities. Also, there are numerous equipment companies with global competitiveness, such as WONIK PNE and CIS. Building on such strengths, Korea’s secondary battery industry is well positioned to lead the global market and establish itself as the growth engine for the next-generation economy.
No.1 Korea in 2030 next-generation secondary battery
| Strategy | Detailed Tasks | Major Contents | Note |
|---|---|---|---|
|
Large-scale R&D through private-public partnership |
Secure next-generation secondary battery technologies early on |
Large-scale R&D to secure super-gap technological prowess |
(2030) KRW 40.6 trillion private investment, Expand support to preoccupy technologies through large-scale government R&D preliminary feasibility study, etc. |
|
Secure parts, materials, equipment element technologies for next-generation secondary battery |
Advance development of next-generation parts, materials, and equipment technologies, Develop next ‘next generation’ original technologies, Establish ‘next-generation battery park’ |
||
|
Secure super-gap technological competitiveness in lithium ion battery |
Advance performance, stability, and production of current lithium-ion secondary battery |
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|
Build a global leading base |
Build a stable secondary battery supply chain |
Secure raw materials and bolster materials production capacity |
Support private companies to participate in mine development projects, Explore joint R&D in raw materials, basic materials technologies |
|
Foster key companies in materials, parts, and equipment |
Create materials, parts, equipment specialized complex as a key growth base, Expand tax benefits by designating as national strategic technology, Enhance financial support, i.e., creating K-battery preferential support program |
Support R&D of SMEs and startups by setting up joint R&D innovation fund worth KRW 80 billion in private-public partnership |
|
|
Foster specialized talents in secondary battery |
Foster talent customized to demand of the industry |
Foster 1,100 + α talents annually |
|
|
Prepare institutional foundation in response to global trends |
Bolster institutional basis, such as efficient management of national key technologies, expansion of secondary battery specifications, preparation of standards for life-cycle carbon emissions, Establish the statistical system for the secondary battery industry |
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|
Create public/private demand market |
Revitalize the after-use secondary battery market |
Prepare an extracting system, Support commercialization |
Establish bases for extraction center in 4 areas across the country (Siheung, Daegu, Jeongeup, Hongseong) |
|
Expand demand base for secondary battery |
Expand demand base utilizing the public market, e.g., public ESS, public ships, Support expansion of the markets to which secondary battery can be applied, such as airlines, ships, machines, and trains |
(2021-2025) Create public ESS market in scale of 2.2GWh |
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|
Create environment for secondary battery new services |
Discover and foster secondary battery-related service industries, e.g., a new industry utilizing secondary battery data, a secondary battery renting and exchanging service |
Establish ‘EV parts data platform’ |
By Minji Kim (minz856@kiet.re.kr)
Korea Institute for Industrial Economics & Trade (KIET)
< The opinions expressed in this article are the author’s own and do not reflect the views of KOTRA.>