There is a possibility that sales of Korean batteries will increase in the US market after the IRA, and Goldman Sachs predicted that K-batteries will have a 60% market share in the US by 2025, and that Korea will account for 77% of the total battery production capacity in the US.

At the 'World Electric Vehicle Battery and Charging Industry Future Strategy Conference' held at the '2023 World Battery & Charging Infrastructure Expo' on the 28th of last month, Hwang Kyung-in, a research fellow at the Korea Institute for Industrial Economics and Trade, gave a presentation on the topic of 'Current Status and Future Development Direction of the K-Battery Industry' and talked about what impact the IRA will have on K-batteries in the future.

▲Hwang Kyung-in, associate researcher at the Korea Institute for Industrial Economics and Trade, is giving a presentation.

The main contents of the IRA battery mineral requirements include: △ If more than 50% of the added value is created in a country with which the US has a FTA during only one process of extraction or processing, the requirement is recognized as met; △ The manufacturing process of major materials such as positive electrode active materials is recognized as mineral processing.

The component requirements include △excluding component materials (main materials such as positive electrode active materials) from the scope of parts that must be manufactured in North America.

This is the battery in North AmericaIt is assessed that it is easy to meet the parts requirements of the Korean battery industry, which operates a re-cell production plant, and the burden of meeting the requirements of our industry has been alleviated by expanding the scope of recognition for core mineral processing.

In addition, it is expected that the fact that K-batteries are emerging as the only alternative due to the negative investment trend of Japanese companies in North America and the conflict with China will work to our advantage.

Research Fellow Hwang Bu-yeon predicted, “Korean companies are proactively expanding their production capacity in the U.S.,” and “Considering the gradual reduction structure after 2030, domestic secondary battery companies with advanced investment scale and speed will benefit the most.”

In addition, vehicles equipped with batteries from our companies that meet the IRA battery mineral and parts requirements will be eligible for a tax credit of up to $7,500 per vehicle, which will give them an advantage in price competitiveness and is expected to have indirect effects such as increased sales through expanded orders.

It is expected that a positive wind will blow naturally to related industries, including the revitalization of the materials industry.

At the 'Seminar on Changes in the Global Electric Vehicle (Battery) Market and the Impact on Domestic Industry and Response Measures' held by the Korea Future Technology Education Research Institute on the 16th, Associate Professor Lee Hyo-young of the Korea National Diplomatic Academy also announced that domestic companies can gain an advantage over their competitors in the U.S. market due to the trend of expanding production in North America.

▲Lee Hyo-young, Associate Professor at the Korea National Diplomatic Academy, is giving a presentation.

However, Associate Professor Lee Hyo-young said that the nuclear energy that goes into the batteryHe said that although the mining process for deep minerals is relatively decentralized, it is highly dependent on China for the refining and smelting process, so it is necessary to continue to respond well in the future.

Accordingly, our country has expressed its intention to reduce dependence on China for 10 key strategic minerals to 50% by 2030 and increase recycling to 20%.

The Ministry of Trade, Industry and Energy announced the ‘Key Mineral Securing Strategy’ last February and is currently taking various steps at the national level, such as participating in the ‘Mineral Security Partnership (MSP)’.

The three strategies for securing key minerals are: △ strengthening crisis response capabilities, △ diversifying key mineral acquisition, and △ establishing a systematic key mineral acquisition infrastructure.

The Ministry of Trade, Industry and Energy will develop a 'Global Mine Map' that provides overseas mine information such as mining rights (exploration, development), reserves (drilling status), and infrastructure conditions (accessibility) by exploration, development, and production stages by 2023, and develop and distribute a 'Core Mineral Supply and Demand Map' that integrates global core mineral supply and demand information on the map by 2024.

In addition, an early warning system will be established by 2025 using a supply and demand stabilization index based on mid- to long-term price risks, domestic imports, and demand growth rates.

The Ministry of Trade, Industry and Energy plans to monitor the supply and demand status of key minerals using the above system, and if an issue of supply disruption is detected, it will be disseminated through companies' web services, etc., and take preemptive measures such as preparing to release reserve minerals.