President Moon: "Our Goal Is Clear, To Be the Undisputed No.1 Battery Nation" (Comprehensive)

Chungbuk Ochang 'K-Battery Development Strategy' Announced... "Battery Investment, Offering Exceptional Investment Incentives"

[Asia Economy Reporter Ryu Jeong-min] President Moon Jae-in stated on the afternoon of the 8th during his visit to LG Energy Solution's second plant in Ochang, Chungbuk, "Our goal is clear. By 2030, we aim to become the 'undisputed number one battery nation'."

President Moon made this remark while announcing the ‘K-Battery Development Strategy.’ The plan envisions making the battery industry another pillar of the economy, just as semiconductors have supported the Korean economy. He explained, "Batteries are rapidly emerging as the core of future industries. If semiconductors are the brain that processes information, batteries are like the heart that powers products."

President Moon emphasized, "The global battery market has doubled in the past five years and is expected to surpass the memory semiconductor market by 2025. By 2030, it is projected to become a $350 billion market, eight times its current size. This is an enormous opportunity and, at the same time, a challenge."

[Image source=Yonhap News]

Considering the growing reality of the global battery market and the intensifying competition, this signifies a commitment to firmly establish South Korea’s status as the top battery nation through bold investment and support. President Moon explained, "As the competition to secure supply chains accelerates, the United States and European countries have moved beyond attracting investment to actively fostering their domestic battery companies. Global electric vehicle manufacturers are declaring their own battery production."

President Moon praised Korean companies that have made bold investments amid global competition. He said, "LG Energy Solution is expanding its factories and today is breaking ground on the Ochang 2nd plant. LG Energy Solution, Samsung SDI, and SK Innovation are joining forces with small and medium-sized enterprises to invest a total of over 40 trillion won by 2030. I send my respect and applause for the courage of all entrepreneurs who always take the lead in challenges."

President Moon explained the ‘K-Battery Development Strategy’ to support corporate efforts. First, he announced the provision of unprecedented investment incentives. He stated, "We will designate batteries as a ‘national strategic technology’ alongside semiconductors and vaccines, and strengthen tax support by offering up to 50% tax credits on R&D investments and up to 20% on facility investments. We will also operate the ‘K-Battery Preferential Financial Support Program’ worth 1.5 trillion won."

President Moon also revealed plans to secure next-generation battery technologies early. He said, "We will commercialize lithium-sulfur batteries by 2025, all-solid-state batteries by 2027, and lithium-metal batteries by 2028. We will promote a mega R&D project exceeding 500 billion won and establish a ‘Next-Generation Battery Park’ that comprehensively supports research, demonstration evaluation, and workforce training."

President Moon Jae-in announcing the K-Battery development strategy on the 8th.
[Photo by Cheong Wa Dae]

Furthermore, regarding the creation of new battery markets, President Moon pledged, "With the commercialization of flying cars by 2025, we will accelerate the low-carbon and eco-friendly transition in ships, construction machinery, and railroads. We will also introduce new services that allow electric vehicle batteries to be rented or swapped."

President Moon expressed his commitment to building an industrial ecosystem based on solidarity and cooperation. He stated that to secure stable supplies of key raw materials, close cooperation with mineral resource-holding countries will be pursued, and support for private overseas mineral development projects will be increased.

He said, "We will also decisively resolve issues of overseas dependence on materials, parts, and equipment technologies, as well as workforce shortages. We will focus support on cooperative R&D projects that enable battery manufacturing conglomerates and small and medium-sized parts and materials companies to jointly develop core technologies."

President Moon added, "We will train more than 1,100 specialized personnel annually to meet field demands. We will actively support building a strong alliance between the battery industry and demand companies."

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