Lawmakers said the government could also play its role in local companies’ supply chain negotiations to enhance procurement stability and ensure competitive pricing for Korean battery makers.“China’s government-backed investments have ensured a dominant position for its battery makers in the battery supply chain,” said an executive at a Korean battery maker.“Korea also must adopt a strategic approach to secure resources and remain competitive.”A GLOBAL RACEChina’s battery giants, including Contemporary Amperex Technology Co.Ltd.and BYD Co., have captured a 69% share of the global battery market in 2024, bolstered by extensive state subsidies.
Under the proposed scheme, companies would receive cash incentives, addressing the challenges faced by the Korean battery trio, which collectively posted 841.9 billion won in losses ($573 million) in the fourth quarter of 2024.“Chinese battery makers such as CATL have enjoyed significant state support, propelling them to global leadership,” said a Korean battery industry official.“Meanwhile, the US is using substantial subsidies to attract overseas battery makers to build factories in the country.
Nevertheless, there’s a severe lack of government support, and critics said Korea must work out its version of the US Inflation Reduction Act (IRA) and AMPC to help its battery companies stay ahead of their rivals.
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