Government to Develop Batteries and Materials as Five Major Export Items

Minister Lee Chang-yang Visits LG Energy Solution Ochang Plant

Batteries and battery materials are expected to be included among the top five export items within five years. The government is focusing on advancing and diversifying export items and expanding the export base to support battery and material exports.

On the 25th, Lee Chang-yang, Minister of Trade, Industry and Energy, visited LG Energy Solution's Ochang plant to review the achievements of the secondary battery industry and check future tasks.

Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy is responding to questions from lawmakers at the plenary meeting of the Industry, Trade, Energy, Small and Medium Venture Business Committee held at the National Assembly in Yeouido, Seoul on the 24th. Photo by Hyunmin Kim kimhyun81@

At the event, Hwang Kyung-in, a researcher at the Korea Institute for Industrial Economics and Trade, predicted that batteries and materials will enter Korea's top five export items within five years.

Battery export value increased by 15% from $8.6 billion in 2021 to $9.9 billion last year, and the upward trend has continued this year. Cathode material exports also grew sharply, more than doubling compared to the previous year following a 2.6-fold increase last year.

In particular, the order backlog of the three major battery companies surpassed 560 trillion KRW in 2021 and 775 trillion KRW in 2022, and is expected to exceed 1,000 trillion KRW this year.

Goldman Sachs, a foreign investment bank, in its analysis report on the expansion of Korea's electric vehicle supply chain, also forecasted that Korean battery companies' sales will grow at an average annual rate of 43%, increasing real GDP growth by 0.3% annually through 2027.

The government plans to invest more than 300 billion KRW in technology development and infrastructure by 2027 to advance export items, diversify export items, and expand the export base.

To advance export items, high-nickel cathode materials (nickel content over 95%) and silicon anode materials (silicon content over 20%) will be developed. To diversify export items, lithium iron phosphate (LFP) batteries, sodium batteries, redox flow batteries for energy storage systems (ESS), and cathode materials outside the ternary system will also be developed.

Following the launch of R&D projects on LFP batteries last month, new projects on the recently spotlighted sodium batteries are being planned in consultation with related ministries.

To expand the base of export materials, parts, and equipment (SoBuJang) companies, cooperative R&D projects involving both SoBuJang companies and battery companies will be expanded, and shared infrastructure called "Battery Parks," where materials developed by SoBuJang companies can be practically tested in actual batteries, will be established at five locations nationwide.

Minister Lee said, "We will listen more closely to the voices of the industry and spare no support so that the secondary battery industry can firmly establish itself as a world leader."

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