LG "Korea to Create Battery Technology Hub"... 15 Trillion Won Investment Over 10 Years

K Battery Development Strategy Report Conference
"First in Korea, Solidifying World No.1 Status"

President Moon Jae-in is participating in the groundbreaking ceremony for the LG Energy Solution Test Research Center after attending the K-Battery Development Strategy Report event titled "K-Battery, Charging the World" held on the 8th at LG Energy Solution Ochang Plant No. 2 in Cheongju, Chungbuk.

[Asia Economy Reporter Choi Dae-yeol] LG has decided to invest more than 15 trillion won domestically over the next 10 years to nurture battery technology and personnel.

On the 8th, at the ‘K-Battery Development Strategy Report Meeting’ held at the Ochang Plant 2, Kim Jong-hyun, President of LG Energy Solution, unveiled an investment strategy containing this plan. President Kim said, "LG Energy Solution and LG Chem will invest 15.1 trillion won domestically over the next 10 years, including 9.7 trillion won in research and development (R&D), and contribute to creating about 8,000 jobs."

LG was the first in Korea to mass-produce lithium-ion secondary batteries in 1999. In 2009, it became the world’s first to apply lithium-ion batteries to cars in cooperation with Hyundai Motor. The company holds about 24,000 patents related to this, the largest number worldwide, and its global market share and production capacity are also among the top. The order backlog for electric vehicle batteries has exceeded 180 trillion won, the company stated.

To solidify its current status, President Kim plans to establish a domestic battery R&D and production technology triangular hub, set up an in-house research institute to nurture specialized personnel, and strengthen the value chain by cooperating with material, equipment, and component companies as three core tasks. The focus is on developing Korea into a mecca for battery R&D and production technology and accelerating the localization of materials. LG Energy Solution will spend 12.4 trillion won on technology development and production line expansion, while LG Chem will invest 2.7 trillion won in advanced battery material technology development.

A triangular hub for battery R&D and production technology will be established centered on Ochang, Daejeon, and the Seoul metropolitan area. Ochang Plant 2 will be developed as an advanced base for smart factories. By 2023, the site of 380,000㎡ will be equipped with pilot facilities and next-generation smart factory equipment. The technology accumulated at this plant will be disseminated to overseas factories. Ochang Plant 1 will handle domestic order production and global factory volume control functions. The Daejeon R&D campus will add a research building by the year after next, while the metropolitan area research centers (Magok and Gwacheon) will focus on next-generation battery R&D such as lithium-sulfur and all-solid-state batteries. Collaboration spaces with startups will also be provided.

To nurture specialized personnel, which the industry has long demanded, LG IBT (Institute of Battery Tech) will be established at Ochang Plant 2. The company said it is the first specialized education institution among global battery companies. The seven-story building, capable of accommodating up to 400 people, is scheduled to be completed in January of the year after next. In addition, joint development and quality improvement cooperation activities with domestic material, parts, and equipment companies will be expanded. A new quality section will be created in the partner company education program.

President Kim said, "We will not be complacent with current achievements but will accelerate technology development and innovation to lead next-generation battery technology and maintain K-Battery’s position as the world’s number one."

This content was produced with the assistance of AI translation services.