S. Korean battery industry lags behind China and Japan in global competitiveness: survey

18, Jan. 2019

SEOUL, AJU - The global competitiveness of South Korean battery makers for electric vehicles fell behind China and Japan due to growing competition that has undercut profitability, according to a survey published by a private research institute.

In a survey of 25 experts, the Korea Economic Research Institute found that

South Korea lagged behind Japan in technological competitiveness and China got ahead of South Korea in growth potential. In terms of market share and business environment, South Korea was ranked lowest.

South Korea, Japan and China account for about 80 percent of the global battery market. The survey found that worsening profitability caused by competition was the most difficult factor in South Korea's battery industry.

Experts stressed that in order to secure competitiveness, South Korean battery makers should secure the stable supply of core materials, strengthened institutional support and research personnel.

Under a government-initiated campaign to nurture South Korea's battery industry, LG Chem, Samsung SDI and SK Innovation have joined hands to develop next-generation technology together. They agreed to create a fund worth 100 billion won ($89.2 million) in the first quarter of 2019 for joint research and startups.