"To Lead China, Only R&D Matters"…Diverse R&D Approaches in the Battery Industry

[Asia Economy Reporter Oh Hyung-gil] Battery companies invested about 1 trillion KRW in research and development in the first half of the year to secure high-capacity, high-quality battery technology.

It is pointed out that instead of competing for market share with Chinese companies battling for the global battery market, they need to focus on widening the technological gap.

According to the industry on the 20th, LG Energy Solution, Samsung SDI, and SK On spent a total of 997.1 billion KRW on R&D costs in the first half of this year. This accounts for 61.9% of last year's total R&D expenditure (1.6108 trillion KRW).

POSCO Chemical, which is expanding its battery materials business, also invested 17.1 billion KRW in research and development in the first half of the year, about twice the 8.3 billion KRW spent during the same period last year.

By company, Samsung SDI, which includes electronic materials R&D costs, spent the most at 514.7 billion KRW. LG Energy Solution followed with 387.4 billion KRW, and SK On with 103.9 billion KRW. The ratio of R&D expenses to sales for each company was confirmed as LG Energy Solution 4.0%, Samsung SDI 5.9%, and SK On 4.1%.

Regarding the main contents of research and development, Samsung SDI is developing next-generation high-energy-density cathode and anode materials and electrode design technology. It is also conducting analysis on the electrode structure and degradation of cylindrical cells, which have recently attracted attention as the next-generation battery form factor.

Samsung SDI decided to build a second battery plant in Seremban, Malaysia, investing 1.7 trillion KRW to respond to the increasing demand for cylindrical batteries. Additionally, it is establishing a 46mm diameter battery pilot line at its Cheonan plant in Chungnam and is reportedly discussing battery supply with multiple automakers.

LG Energy Solution is promoting the development of high-capacity high-nickel cathode materials and fast-charging anode materials. In particular, it is also developing flame-retardant and high-heat-resistant separators.

Last month, LG Energy Solution suffered significant losses due to electric vehicle fires, agreeing to share the recall cost of 1.4 trillion KRW related to General Motors (GM)’s Bolt EV vehicle fire equally with LG Chem. It is interpreted that they have started R&D related to battery stabilization in response.

SK On has embarked on developing recovery technology for cathode active materials and ultra-high-strength, ultra-high-heat-resistant, low-resistance separators for high-capacity batteries. It is also expected to create synergy in the separator business with SK IE Technology, which operates the separator business within the group.

Meanwhile, battery companies are steadily increasing their number of employees. The number of employees working at the three companies increased by 1,564 from 22,183 in December last year to 23,747.

LG Energy Solution increased from 9,564 employees in December last year to 10,105 in June this year. During the same period, Samsung SDI increased from 11,315 to 11,502 employees, and SK On from 1,512 to 2,140 employees.

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