K-Battery to Invest 8 Trillion Won in Future Technologies Over 5 Years... Government to Focus Support on Sodium-Ion and All-Solid-State Batteries

Ministry Unveils "Battery Industry Technology Roadmap"
4 Trillion Won for Domestic Production, 2.7 Trillion Won for Process Innovation

Domestic battery companies will invest 8 trillion won in research and development (R&D) and facility expansion by 2030. The government has announced it will provide targeted support for the development of next-generation sodium-ion batteries and for the early commercialization of all-solid-state batteries through R&D projects totaling 400 billion won.

On September 22, the Ministry of Trade, Industry and Energy will unveil the "Battery Industry Technology Roadmap" at a roundtable held at the Korea Chamber of Commerce and Industry in Seoul with battery industry stakeholders, including LG Energy Solution, Samsung SDI, SK On, POSCO Future M, L&F, and Ecopro BM, as well as related organizations.

According to the Ministry, companies plan to invest 7.9328 trillion won by 2030 to secure price competitiveness in the global battery market. These investments will go toward the development of circular materials (156.5 billion won), domestic manufacturing (3.9973 trillion won), process innovation (2.7594 trillion won), material diversification (589.6 billion won), and material localization (430 billion won).

The largest portion will be invested in domestic manufacturing. The government has increased the weighting of domestic industry ecosystem contributions—such as supply chain stability, job creation, and rapid response systems—in the competitive bidding for battery energy storage systems (BESS) in the central contract market. Additionally, with the recently announced 2026 tax reform bill, the government introduced a domestic manufacturing tax credit and expanded the list of eligible items to include secondary batteries, thereby improving the investment climate for domestic companies.

In the field of process innovation, investments will focus on environmentally friendly and advanced processes and the development of core equipment, such as dry electrodes and waste heat recovery for low-carbon manufacturing and energy efficiency improvements.

The government also plans to align the domestic "Used Battery Act" recycling rate with the European Union (EU)'s key mineral recycling requirements, to help foster a private-sector battery recycling ecosystem. The EU mandates recycling rates for cobalt at 16%, lithium at 6%, and nickel at 6% by 2031.

Companies plan to diversify materials—such as by developing mid-nickel and lithium manganese-rich (LMR) options—and will actively invest in next-generation core materials, including precursors, anode materials and lithium sulfide, which currently rely heavily on overseas supply.

The public and private sectors will jointly invest in the development of sodium-ion batteries, considered a next-generation affordable battery, and accelerate the early commercialization of all-solid-state batteries. The government will invest 255.4 billion won, while the private sector will invest 85.1 billion won.

The goal for sodium-ion batteries is to achieve an energy density of 160Wh/kg by 2027, and 220Wh/kg by 2030. For all-solid-state batteries, the objective is to release a prototype in 2027—becoming the first in the world to do so—complete development of a product with 400Wh/kg energy density by 2028, and commercialize it at scale by 2030.

Sodium-ion batteries are highly safe and offer excellent low-temperature performance. Sodium is cheaper than lithium and helps reduce dependence on materials from China. All-solid-state batteries offer high energy density and safety, making them promising for use in high-performance electric vehicles, robots, and drones.

Meanwhile, to prevent redundant investment from independent company development, the government will foster a collaborative environment among the three major battery cell makers and promote material-to-cell collaboration projects that help commercialize developed materials. The government will also establish a system to feed battery management system (BMS) data back into battery development and will develop standards for next-generation batteries to secure global technological leadership. For joint technology cooperation, commercialization linkages, information sharing, and lifecycle collaboration, the government will invest 62 billion won and the private sector will invest 22.6 billion won.

Lee Minwoo, Director of Industrial Growth Policy at the Ministry of Trade, Industry and Energy, said, "To respond to a market shift toward price-driven competition and growing supply chain uncertainty, public and private sectors must form a united front and implement a strategy of focused priorities," adding, "The government will provide comprehensive support, including large-scale R&D investment and institutional incentives, to help Korean batteries reclaim and solidify their leadership in the global market."

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