[Report] Not 4-5 Years Later... The 'All-Solid-State Battery War' Has Already Begun (Comprehensive)

Samsung to Build Pilot Plant, SK Also "Starting Preparations"
LG Aims for Polymer Battery Commercialization by 2026

Minister Directly Orders Samsung to "Speed Up 6th Generation Battery Development"

Hummer Truck, BMW, Ferrari Car Showrooms Fully Mobilized

Government Urges "Residential ESS Distribution," Association Requests "KEPCO Support"

Unified Voice on Raw Material Price Surge Due to "Ukraine Crisis"

At the 'InterBattery 2022' Samsung SDI booth, Minister of Trade, Industry and Energy Moon Seung-wook (third from right), Samsung SDI CEO Choi Yoon-ho (second from right), Jeon Young-hyun, Chairman of the Korea Battery Industry Association and Vice Chairman of Samsung SDI (second from left), SK On CEO Ji Dong-seop (second from left), and other officials listen to an explanation about Samsung's battery brand PRiMX and the level of the all-solid-state battery series, and pose for a commemorative photo.
(Photo by Moon Chae-seok)

[Asia Economy Reporter Moon Chaeseok] "We have kept our promise to commercialize the 'Gen5' battery this year, as promised to the Minister last year." (Samsung SDI) "I believe the commercialization of 'Gen6,' scheduled for 2024, will be accelerated." (Moon Seung-wook, Minister of Trade, Industry and Energy) To summarize the '2022 InterBattery' in one line: 'The all-solid-state battery war has already begun.'

At the 'InterBattery 2022' exhibition held on the 17th at COEX in Samseong-dong, Gangnam-gu, Seoul, Minister Moon smiled broadly upon seeing the BMW i4 electric vehicle equipped with Samsung SDI's PRiMX Gen5 battery and the battery itself. This came three days after the groundbreaking of the all-solid-state battery pilot line (pilot production line), igniting the 'all-solid-state battery war.' The BMW i4 equipped with Samsung's Gen5 battery is a new model to be released domestically on the 28th and can travel 378 to 429 km on a single charge.

The All-Solid-State Battery War Has Already Begun

At the InterBattery 2022 SK On exhibition, Moon Seung-wook, Minister of Trade, Industry and Energy (second from the left), wrote a handwritten support message on an SK On battery product and posed with officials. From the left, Jeon Young-hyun, Chairman of the Korea Battery Industry Association (Vice Chairman and CEO of Samsung SDI), Minister Moon, Ji Dong-seop, President and CEO of SK On, and Choi Yoon-ho, President and CEO of Samsung SDI.
(Photo by Moon Chae-seok)

When Minister Moon did not hide his expectations for the development speed of the Gen6 battery, Yoon-ho Choi, CEO of Samsung SDI, responded, "For the 6th generation battery, we are meticulously considering mass production and research to keep the promise of commercialization in 2024," adding, "We will work hard." In response to Minister Moon's question, "I heard it is lighter than competitors," CEO Choi emphasized, "The core of competitiveness is who can make it lighter and deliver the maximum output."

At the SK On exhibition, Minister Moon showed great interest by personally writing a message of support on the battery. SK On CEO Ji-dong Seop, who attended the event, told reporters, "It seems Samsung has advanced a bit faster in all-solid-state batteries," adding, "We are also preparing." Earlier, Samsung SDI announced on the 14th that it had broken ground on a 6,500㎡ (2,000 pyeong) all-solid-state battery pilot line (S line) at its research center in Yeongtong-gu, Suwon-si, Gyeonggi-do.

LG Energy Solution is also developing both 'polymer-type' and 'sulfide-type' all-solid-state batteries and aims to commercialize polymer-type batteries by 2026. The three major Korean companies are focusing on this core material that attracts global attention. This is because it is safer than existing products due to the absence of organic solvents and can increase energy density by utilizing lithium metal anodes.

Government: "Increase the Distribution of Residential ESS"

The 'InterBattery 2022' LG Energy Solution exhibition hall features an explanation of the polymer-based all-solid-state battery under development with the goal of commercialization in 2026. (Photo by Moon Chae-seok)

As much as all-solid-state batteries, the distribution and safety issues of energy storage systems (ESS) also attracted great attention from visitors. In particular, Minister Moon emphasized that this is an essential part of the government's energy transition policy and requested cooperation.

Minister Moon stayed about 12 minutes at LG Energy Solution's exhibition and asked President Lee Bang-su about the global and domestic distribution status of residential ESS. President Lee replied, "It is widespread in the North American and Japanese markets, but it is not yet widespread here." When Minister Moon requested, "Although we have many apartments, I hope to develop ESS models for detached houses," President Lee responded, "Understood."

Samsung SDI appeared to pay more attention to safety issues. CEO Choi emphasized to Minister Moon, "We have created a system that monitors about 96% of domestic ESS installation facilities," adding, "We are prepared to respond immediately if any issues arise."

Attending as the chairman of the Korea Battery Industry Association, Jeon Young-hyun, Vice Chairman of Samsung SDI, actively appealed the association's position to government authorities and public institutions rather than Samsung's. In particular, he personally lobbied Jeong Seung-il, President of Korea Electric Power Corporation (KEPCO), asking, "Please consider cooperation related to ESS at KEPCO." Since the issue of KEPCO's dual role in new and renewable energy generation and sales has been resolved due to political demands, he urged the large operator KEPCO to pay attention. President Jeong reportedly gave a positive response. Vice Chairman Jeon explained to reporters, "I requested cooperation with KEPCO in my capacity as the association chairman, not as Samsung's vice chairman."

'Ukraine Crisis'-Driven Raw Material Price Surge Requires "Unity"

Explanation of 'High-Nickel Cathode Materials' at POSCO Chemical Exhibition Hall, InterBattery 2022. (Photo by Moon Chae-seok)

Samsung's CEO Choi and LG's President Lee emphasized that the surge in raw material prices caused by Russia's invasion of Ukraine is a problem that companies cannot solve alone. President Lee told reporters, "It is difficult for individual companies to respond to raw material prices," adding, "We will cooperate with government authorities to manage this well."

At a meeting with reporters, President Lee mentioned, "The prices of major battery raw materials are linked to the prices with automotive customers (automakers), so the impact is limited," but also noted, "If uncertainty continues in the long term, it could negatively affect the entire battery and upstream industries, so we are monitoring closely." He added, "We are focusing on securing stable supply and price competitiveness through long-term supply contracts, minority equity investments, and joint ventures (JVs) with major raw material suppliers."

The three company CEOs responded that there is no immediate problem because raw material prices and battery sales prices are linked in contracts with automakers. This creates a kind of hedging effect.

CEO Choi told reporters, "Since the sales price is linked, it is currently manageable, and we are trying to minimize the impact by making many long-term contracts." At a meeting with reporters, he added, "Minister Moon expressed concerns about the supply chain and encouraged everyone in the battery industry to work together," adding, "I cannot comment on government support measures, but I heard they are considering it carefully." CEO Ji also emphasized, "We also have a system linking raw material prices and battery sales prices," saying there is no significant immediate impact on profitability.

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