SK On 1.5 Trillion · LG Energy Solution 1.2 Trillion... Enhancing Completeness of Korean Battery Domestic Investment Ecosystem

The pace of domestic investment by the three major battery companies is also accelerating. Battery companies, whose products are heavy and thus inevitably build many factories overseas, plan to develop their domestic factories into 'mother factories.' This means assigning the role of a 'test bed' (an environment where the performance and effects of new technologies and products can be tested) for the latest products and manufacturing processes to domestic factories. Accordingly, the materials, parts, and equipment (SoBuJang) ecosystem is also expanding.

SK On announced plans to invest a total of 1.5 trillion KRW in its domestic battery forward base, the Seosan plant in Chungnam. They are pushing forward with the construction of the 3rd plant following the 1st and 2nd plants (6GWh), aiming to complete the expansion by 2025 and sequentially reach a maximum production capacity of 14GWh by 2028 through equipment replacement and process improvements. In this case, SK On's total domestic production capacity will rise to about 20GWh annually, enough to equip approximately 280,000 electric vehicles.

Earlier, LG Energy Solution announced in March this year that it would invest 600 billion KRW in the 'Ochang Energy Plant 2' in Cheongju, Chungbuk, to establish a 'mother line.' They are conducting pilot production of 'pouch long-cell batteries' while verifying mass production feasibility. Long cells refer to batteries with a horizontal length of 500?600 mm or more. Since June last year, LG Energy Solution has also been investing 580 billion KRW to build a new form factor mother line for cylindrical batteries. All verification of next-generation core products is being conducted in Ochang. They are digitizing the production line through video data and establishing an AI-based Factory Monitoring Control Center (FMCC). Smart factory systems such as remote support, manufacturing intelligence, and logistics automation have also been introduced. These systems will later be expanded and applied to production lines worldwide. Although Samsung SDI has not officially announced it, it is expected to expand its Ulsan plant. They plan to expand domestic investment by establishing a production base for lithium iron phosphate (LFP) batteries.

The expansion of domestic investment by these three battery companies is contributing to job creation and regional economic revitalization. Chungnam Province expects that SK On's current expansion will create about 800 new jobs. The production inducement effect from factory construction is analyzed to be 2.1247 trillion KRW, with a value-added inducement of 743.6 billion KRW. Currently, the Seosan plant employs about 2,000 people (including partners), but this is expected to reach about 3,000 once the 3rd plant is completed. LG Energy Solution's Ochang plant, which currently produces 18GWh, employs about 5,000 people. Employment at the Ochang plant is also expected to increase further with expansion by 2025.

The SoBuJang ecosystem also presents an opportunity to lead the global battery industry. SK On stated, "A significant portion of the investment in the 3rd plant will be used to purchase battery equipment, and as production increases, the scale of raw material purchases will also gradually increase." They explained, "The SK On Seosan plant is a core facility for accumulating know-how necessary to establish a global battery production base and a cradle for nurturing battery specialists."

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