S. Korea to Invest Some $12.4B Over 10 years to Become Dominant in Rechargeable Li-ion Batteries
13 July 2010
Yonhap. South Korea will invest up to 15 trillion won (US$12.4 billion) in the next 10 years to become the world’s dominant producer of rechargeable batteries.
The Ministry of Knowledge Economy and the Ministry of Educational Science and Technology said the new “Battery 2020 Project” aims to pool resources from both the state and private sector to gain control of the rapidly expanding industrial sector.
As of 2009, South Korean, Japanese and Chinese companies controlled 95 percent of the global production with Japan’s Sanyo holding onto 20 percent of the market followed by Samsung SDI Co. and LG Chem Ltd. controlling 19 percent of worldwide production each. This was followed by a 12 percent market share for Sony and 7 percent for China’s BYD.
Samsung SDI and LG Chem control 38% of the current market, according to a minister, but the local parts and technology for those represent less than 20%. One aim of the Battery 2020 project is to boost local sourcing for parts and materials, and further develop local technologies to boost competitiveness and growth.
Government officials predicted that there will be up to 10 globally competitive local battery manufacturers in the next decade.
(A hat-tip to Jack!)
With this size of investment, South Korea will certainly become one of the world leader for EV batteries within a few years.
Serious competition will bring batteries price down and performance up.
Posted by: HarveyD | 13 July 2010 at 07:56 AM
If a U.S. administration proposed more than $1 billion per year for ten years for lithium ion battery plants, you would hear rants of "big government" and a "waste" of tax payers dollars. Apparently the government can spend for research that the private sector can use, but stay out of the business.
Posted by: SJC | 13 July 2010 at 02:14 PM
SJC: The current Administration, thru the economic recovery program, has been spending $$ B to promote R&D and local production of batteries for future PHEVs/BEVs. Those $$B are being spread around in very thin layers to satisfy all States and to maximize job creation.
Unfortunately, patent rights protection and patent lawyers will certainly delay mass production of a very high percentage of the new technologies developed with those government funded R&D programs.
Why Governments don't become owners of all patents acquired with Government funded R&D programs? Those patents could be auctioned or sold (at reasonable low price) to local producers to accelerate the process and lower batteries' cost. Tax payers would get om of their money back.
Posted by: HarveyD | 13 July 2010 at 06:06 PM
They do not do that because it would be branded "socialism" by the usual suspects. They are already saying that the ARRA and DOE programs don't work. They have no alternative except to complain that health care and energy bills are creating business "uncertainty".
Posted by: SJC | 14 July 2010 at 10:21 AM