"Maintain Core Engine Technologies While Strengthening Research on Eco-Friendly Fuel 'e-Fuel'"

"Electrification Threatens Entire Automotive Industry Ecosystem"
"If E-Fuel Becomes Commercialized, Internal Combustion Vehicles Can Also Achieve Carbon Neutrality"

[Asia Economy Reporter Yu Je-hoon] Amid the global trend toward carbon neutrality and electrification, which is causing the internal combustion engine vehicle-related industry to decline, there is a call to strengthen research and development on the eco-friendly fuel "e-Fuel" while maintaining core engine technologies to address uncertainties in current carbon neutrality policies and protect the existing automotive industry ecosystem.

The Korea Automotive Parts Industry Promotion Foundation (KAP) held the "2021 Autumn Automotive Parts Industry Development Strategy Seminar and Parts Industry Awards Ceremony" on the 21st. The seminar, conducted online in a non-face-to-face format, was attended by 450 employees from parts companies.

At the seminar, it was analyzed that although there is a global wave of electrification, significant uncertainties remain. Oh Won-seok, KAP Chairman, stated, "As seen in Europe's Life Cycle Assessment (LCA), hybrid vehicles have been found to emit less carbon dioxide (CO2) than electric vehicles, so it is unclear which direction future carbon neutrality policies will take. Although support policies for future vehicles are being strengthened, the number of parts in electric vehicles is reduced to about two-thirds of that in internal combustion vehicles, raising concerns about excessive competition. As a result, most parts companies face crises, and the entire automotive industry ecosystem could be threatened."

Chairman Oh also emphasized, "It is essential to continue maintaining and developing the few core technologies for engine production worldwide while inevitably conducting research and development on e-Fuel, an electric-based eco-friendly fuel that can significantly reduce carbon emissions. The government and industry must also prepare a mid- to long-term roadmap in anticipation of e-Fuel commercialization."

During the subsequent discussion, there were further arguments for diversifying power sources, given the possibility that electric vehicle battery prices may not stabilize easily. Lee Ki-hyung, President of the Korean Society of Automotive Engineers, said, "Due to shortages of battery materials, battery prices are not expected to decrease as quickly as anticipated, leading major advanced automotive countries to refocus on internal combustion vehicles. We must also respond by diversifying power sources through improving internal combustion engine efficiency, applying eco-friendly vehicles, and adopting renewable alternative fuels."

Lee also commented on e-Fuel, stating, "Since e-Fuel utilizes CO2 both during combustion and manufacturing, it recycles carbon, enabling existing internal combustion engines to achieve carbon neutrality. Therefore, it should be widely recognized as a means to reduce greenhouse gases in the transportation sector. Policies aimed at phasing out internal combustion engines could lead to a loss of momentum in private alternative fuel development. Hence, e-Fuel should be included within the scope of new growth core technologies, and related support should be expanded."

Meanwhile, KAP also held the Parts Industry Awards Ceremony that day. The Minister of Trade, Industry and Energy Award was presented to Global Engineering (organization), Kim Jong-wook, Director of Neotis (individual), and Lee Jun-baek of Taeyang Metal Industry (model worker). The Hyundai Motor Group Chairman's Award was given to THN, Silryuk Industry, and Intops (organizations), respectively.

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