The industry ministry announced Thursday that the South Korean government and top battery businesses will invest 20 trillion won ($15.1 billion) until 2030 to develop advanced battery technologies such as solid-state batteries.
“The joint investment will allow South Korea to start commercial production of solid state batteries ahead of others,” the ministry stated.
Three of the world’s five largest electric vehicles (E.V.) battery makers—L.G. Energy Solution Ltd (LGES) (373220. K.S.), Samsung SDI Co Ltd (006400. K.S.), and SK On—are based in South Korea.
The trio supplies Tesla Inc (TSLA.O), Volkswagen AG, General Motors Co (GM.N), and Ford Motor Co (F.N.) with over 25% of the global E.V. battery market.
The government said the three battery businesses would develop South Korean pilot production units as product and manufacturing innovation centers.
Before mass producing solid state, cylindrical 4680 cell, and cobalt-free batteries overseas, the plants will test and manufacture them.
E.V. battery producers are racing to create new technologies with greater driving range, energy density, and better safety than lithium-ion batteries.
On Wednesday, Chinese battery maker CATL (300750. S.Z.) introduced a condensed matter battery for E.V.s.
Last month, the world’s largest battery maker said it was struggling to develop a solid-state battery solution that was technologically possible and competitive. Toyota Motor Corp (7203.T) and Volkswagen are also researching the technology.
South Korea’s industry ministry said the investment would treble domestic cathode material output and triple exports of battery production equipment.
The government earlier this month unveiled a 7 trillion won financial support plan for domestic battery companies investing in North American infrastructure to cope with the U.S. Inflation Reduction Act.
