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  • S.Korea’s EV Battery Needs to Secure Raw Materials for Competition in Europe
    2019-08-14 hit 392

    S.Korea’s EV Battery Needs to Secure Raw Materials for Competition in Europe


    - From 2025, competition with European batteries will be inevitable Essential to develop next-generation batteries and foster human resources -

     

    It is pointed out that Korean companies need to secure stable supply of raw materials for batteries in order to remain competitiveness in the European EV battery market.

     

    According to the report titled ‘Key Issues in Electric Vehicle Battery Development Policies of Europe and Implications’ issued by the Brussels Branch of the Korea International Trade Association (Chairman: Kim Young-ju) on August 14th, 408,000 Electric Cars were sold in Europe last year, increased by 33 percent year-on-year, and over 4 million units are forecast to be sold in 2025. The EV battery market is also expected to grow to € 250 billion by 2025.

     

    Global EV battery production is led by Asian countries such as China and South Korea, with only 4 percent of European production. Consequently, the European auto industry, including Audi and Volvo, has decided to invest 145 billion Euros in the production of electric vehicle batteries for 10 years. The European Commission also launched the European Battery Union in 2017 to establish a self-sustaining ecosystem from securing raw materials for electric vehicle batteries to research and development (R & D), manufacturing, use and recycling of core materials with concrete action plans and implementation monitoring.

     

    The report points out,“Korean companies, including LG Chem, SK Innovation, and Samsung SDI, have occupied an important position in the European EV battery supply chain through local investment. However, full-scale competition will be inevitable from around 2025 when the European automakers’investment is completed and their batteries are in full production. 

     

    According to the report, “South Korea is a technological power house in the battery and materials sector, but its self-supply of raw materials, which takes up a high proportion of battery cost, is insufficient.” The report advises, South Korea needs to work on not only the ways to secure stable supply of raw materials but also developing next-generation batteries, securing stable suppliers, fostering human resources, improving related regulations and building infrastructure.

     

    Choi Kyung-yoon, General Manager at the Brussels Branch of the Korea International Trade Association, said, European countries are expected to actively promote the electric vehicle battery industry as the new President of the European Commission Von der Leyen has vowed to create the EU that focuses on eco-friendly policies. He also stressed, For the sustainable growth of the EV battery industry, South Korea needs to provide active support.

     

     

     

     


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