In response to declining global electric vehicle demand and aggressive pricing from Chinese manufacturers, the South Korean government and private sector are forming a "one team" system centered on sodium and solid-state batteries. The government plans to invest over 300 billion won in next-generation technology development and joint R&D among companies, while the private sector aims to invest around 8 trillion won to counter the restructuring of the battery market dominated by China.
On September 22, the Ministry of Trade, Industry and Energy announced the "Battery Industry Technology Roadmap" at a meeting in Seoul attended by key figures from major battery manufacturers, including Lee Jae-heon of LG Energy Solution, Song Jae-hyuk of Samsung SDI, and Kim Gyu-sik of SK On, as well as representatives from material companies.
Lee Min-woo, head of the ministry's Industrial Growth Office, stated, "As major countries reduce electric vehicle subsidies and battery demand slows, we are facing a serious situation where countries are prioritizing domestic supply chains. China has already dominated the LFP market and is expected to commercialize solid-state batteries next year, aiming for technological supremacy."
He announced that the government has fully incorporated the demands of companies for comprehensive support for next-generation technologies, collaborative R&D, and incentives for purchasing domestic materials into three key initiatives.
Lee emphasized, "We will focus on supporting the early commercialization of sodium batteries and the technological leadership of solid-state batteries through a two-track approach, launching a large-scale R&D project worth approximately 300 billion won over the next five years starting in 2027."
He added, "We will establish a collaborative ecosystem among finished product, cell, and material companies, focusing on the development of common materials in non-competitive areas and creating a system to feed battery management system (BMS) data from electric vehicles back into battery development."
Additionally, he stated, "We will pursue significant cost reductions and supply chain independence, with the government supporting cost reductions through the introduction of production tax credits, restructuring the ESS central contract market, and establishing specialized advanced industrial complexes."
Kang Kyu-hyung, head of the Battery and Electronics Division at the ministry, noted, "The domestic battery industry still relies heavily on overseas materials, and cooperation between cell and material companies has been insufficient, leading to a gap between R&D outcomes and actual purchases. This roadmap focuses on enhancing the overall competitiveness of the battery ecosystem through concentrated R&D investment, technological collaboration, and securing price competitiveness."
The government plans to form R&D consortiums where cell and material companies collaboratively set performance goals based on trust, expanding joint technology development in common materials and non-competitive areas. It will also establish a cooperation system to utilize BMS data from automakers in battery development.
Support for securing price competitiveness will continue, including production tax credits, support for process innovation, material diversification, and localization, as well as utilizing the ESS central contract market and distributed energy and electric vehicle deployment projects to encourage the use of domestic batteries and materials.
Based on this support, the government aims to ensure that the industry can proceed smoothly with its planned R&D and facility investments of approximately 8 trillion won by 2030.
* This article has been translated by AI.
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