[Column] Korea's Secondary Battery Industry Cannot Afford to Get Off a Running Horse

Recently, I visited Pohang in Gyeongbuk and Gwangyang in Jeonnam, known as the meccas of the domestic secondary battery industry. Pohang houses the anode and cathode material factories of Ecopro and POSCO Future M, while Gwangyang has POSCO Future M's cathode material factory. Centered around these two companies, a massive secondary battery cluster has been formed in these regions.

On-site, there was no sign of the so-called 'Chasm,' referring to the growing pains battery companies experience during their growth phase. Although the global electric vehicle market is facing a growth stagnation period, investments by companies continue unabated.

Ecopro plans to proceed with its ultra-large secondary battery complex in the Yeongilman Industrial Complex in Pohang as scheduled. A company official stated, "The whole world is fiercely competing for the lead," adding, "Once you get off a running horse, you can never get back on." The point is that investments must be made now to secure production capacity that can supply customers three to four years from now.

The groundbreaking ceremony for POSCO Future M's Gwangyang NCA cathode material factory had a similar atmosphere. The day before, due to personnel changes within the POSCO Group, Kim Jun-hyung, CEO of POSCO Future M, had been appointed as the head of POSCO Holdings' Eco-friendly Future Materials division. I thought a CEO about to leave would say little, but I was mistaken. After introducing the executives present one by one, Kim confidently spoke about POSCO Future M's investment plans, saying, "These people will be witnesses." He emphasized, "Now, as we are crossing the chasm, is the best time to invest."

Global battery companies are currently engaged in a life-or-death battle. The power struggle between Korea and China is particularly intense. The United States and Europe are openly showing their efforts to check Asia. Recently, Porsche Consulting released a report stating, "Currently, Asian countries occupy 92% of secondary battery facilities," and suggested that Europe and North America need to cooperate.

North America and Europe might, out of immediate necessity, join hands with Korean companies, but they can 'dump' them at any time. Knowing this, Korean companies still cannot avoid investing.

Secondary batteries are said to be the next-generation growth engine following semiconductors. To this end, companies are undertaking significant risks and investing trillions of won both domestically and internationally. This situation calls for reflection on the government's role in supporting the tireless efforts of these companies.

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