Yoon: "Government Will Support Securing Ultra-Gap in Secondary Battery Industry"

Secondary Batteries, Stable Securing of Core Minerals and Materials Important
Secondary Batteries, Opportunity to Strengthen Position in North American Market
Government Supports to Solidify Advantages and Close Gaps
Public and Private Sectors to Invest 20 Trillion Won in Technology Development by 2030

President Yoon Suk-yeol stated on the 20th that the government will support securing a super-gap advantage in the secondary battery industry, which, along with semiconductors, is at the center of the global technology hegemony competition.

On the afternoon of the same day, President Yoon presided over the National Strategy Meeting (the 16th Emergency Economic and Livelihood Meeting) at the Blue House State Guest House, discussing the national strategy to secure a super-gap in secondary batteries with secondary battery and materials, parts, and equipment (SoBuJang) companies, experts, and ruling party and government officials.

President Yoon first mentioned, "Secondary batteries, which are the power source of electric vehicles in the carbon-neutral era and a key to digital transformation, are becoming increasingly important as core strategic assets for our security alongside semiconductors, and are at the center of the technology hegemony competition."

He added, "Our secondary battery industry has so far possessed world-class competitiveness with high technology and mass production capabilities, but the challenge of maintaining this position is not easy. Currently, two industrial wars?semiconductors and secondary batteries?are fiercely underway, and if we are overtaken by competing countries on either front, the impact on the entire industry will be enormous."

He urged the government to clearly understand these two major industrial fronts?semiconductors and secondary batteries?review problems and crisis factors, and become one team with companies.

[Image source=Yonhap News]

He also emphasized the importance of stable securing of key minerals and materials for secondary batteries. President Yoon said, "We must reduce dependence on specific countries and diversify supply chains. It is essential to build a rich network for securing minerals and materials, as well as reduce the cost of acquiring materials themselves," adding, "A robust industrial ecosystem from SoBuJang to finished products must be established based on a stable supply chain."

He continued, "We must expand investments to achieve world-class competitiveness not only in finished products but also in materials and equipment sectors. In particular, all support should be devised to timely secure advanced industry personnel needed by the industry," emphasizing, "Securing next-generation core technologies will determine our future success. The secondary battery industry is one of the most active fields for technological innovation. We must maintain our competitiveness and super-gap through technological innovations that dramatically improve performance and safety."

He also called for public-private cooperation to leverage opportunities from the U.S. Inflation Reduction Act (IRA). President Yoon said, "This time, we actively responded to the IRA guidance based on public-private cooperation. It seems to have become an opportunity for our companies to solidify their position in the North American market," and added, "Going forward, our government will firmly support ensuring that our companies do not fall behind and secure a gap of superiority in the advanced industry front."

This meeting was held following President Yoon's directive at the Chief Presidential Secretary meeting on the 10th to "prepare a national strategy meeting to strengthen competitiveness in secondary batteries and semiconductors."

Since the announcement of the national advanced industry development strategy at the 14th Emergency Economic and Livelihood Meeting on the 15th of last month, President Yoon has appeared successively at next-generation display and electric vehicle new investment sites to encourage leading corporate investments and innovation and to explore government support measures.

About 70 participants attended, including secondary battery and SoBuJang companies, automobile companies, academia and research sectors, analysts, students, and high-ranking ruling party and government officials such as the ruling party leader, floor leader, policy committee chairman, secretary-general, deputy prime minister for economy, Minister of Trade, Industry and Energy, and Minister of Science and ICT.

The Ministry of Trade, Industry and Energy announced, "By 2030, the public and private sectors will invest about 20 trillion won in technology development to secure world-first mass production technology for vehicle solid-state batteries and preempt super-gap technologies that will become future game changers."

Furthermore, to dominate the global market across the entire value chain from SoBuJang (materials, parts, and equipment) to finished products, tax and research and development (R&D) support to strengthen the competitiveness of materials and equipment companies will be enhanced. It is expected that domestic production of key materials such as cathode materials will increase fourfold and equipment exports will triple within the next five years.

Additionally, through policy fund support for key mineral investments, efforts to diversify corporate supply chains will be supported, while a plan to establish a 100% domestic battery recycling system by 2030 to maximize reuse of spent batteries as resources is underway.

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