Plans to develop all-solid-state batteries and build the first LFP battery production plant in Korea
Additional investment is also being considered for building a battery supply chain and recycling. Ulsan City is starting to fully implement its plan to transform into a next-generation battery hub through private investment of 8.1 trillion won.
Ulsan City plans to develop an all-solid-state battery, also known as a dream battery, in the secondary battery national advanced strategic industry specialization complex and to establish the country's first LFP battery production plant, which is growing rapidly.
The Ulsan Specialized Complex was designated by linking six major industrial complexes in Ulsan, and 173 companies including Samsung SDI, Hyundai Motor Company, Korea Zinc, and Isu Specialty Chemical are located in the specialized complex, boasting the largest number of participating companies among the four secondary battery specialized complexes.
Ulsan City said, “Private investment of 8.1 trillion won is expected to take place by 2030, including an additional 700 billion won in new investment confirmed less than a month after the special complex was designated,” and “Currently, an additional 900 billion won in investment is being discussed, showing the hot interest and willingness of companies to participate in the special complex.”
If the additional investment is confirmed, the investment scale will increase by 1.6 trillion won to 9 trillion won from the 7.4 trillion won announced last month when the specialized complex was designated.
The top priority of the Ulsan Specialized Complex is the development of next-generation batteries.
To this end, in addition to cooperation between leading battery-electric vehicle companies such as Samsung SDI and Hyundai Motor Company, companies newly entering the battery field such as Isu Specialty Chemical (a subsidiary of Isu Chemical) and startups such as Inchems are also expected to actively participate in the development of next-generation battery technology.
In particular, in addition to investing in next-generation batteries, Samsung SDI also plans to build Korea’s first LFP battery production facility in the Ulsan industrial complex.
Ulsan is promoting the establishment of a complete battery supply chain.
As Ulsan has the largest number of companies among the secondary battery specialized complexes, companies are participating in the entire value chain of battery production, from mineral processing → material production → cell manufacturing → electric vehicle manufacturing → recycling.
To achieve self-reliance in the battery supply chain, we are also investing heavily in mineral processing and recycling.
Based on the technological prowess secured in the existing non-ferrous metal industry, Korea Zinc plans to invest a total of KRW 1.2 trillion in the Ulsan specialized complex by 2027 for processing of secondary battery minerals and materials.
In particular, a related plant is being built near the Onsan Refinery to produce 20,000 tons of precursors (for 450,000 electric vehicles) per year by the first half of next year and 60,000 tons of copper foil (for more than 1.5 million electric vehicles) per year by 2027.
Additional investments are also being considered for recycling of key minerals and nickel refining.
In the case of LSMnM, it is also planned to invest more than 1 trillion won by 2026 to produce smelting products and precursors such as lithium, nickel, and cobalt.
With the importance of mineral refining and material processing increasing after the IRA, Ulsan’s large-scale investment is expected to make a significant contribution to the self-reliance of our battery supply chain.
Meanwhile, Minister of Trade, Industry and Energy Lee Chang-yang (hereinafter referred to as the Ministry of Trade, Industry and Energy) said on the 16th that the Ulsan Secondary Power PlantStarting with the National Advanced Strategic Industry Specialized Complex, we have begun on-site activities to seek development plans for each complex.
At the meeting that day, the Minister expressed his gratitude to companies that are actively investing to lead the cutting-edge industry, and emphasized, “Based on this, we will lead the way to a major gap in cutting-edge industries through detailed policy support, such as discovering specific fostering measures through close cooperation between the government and local governments.”