
▲Professor Kim Pil-su, Department of Future Automobile Engineering, Daerim University
“2024 Electric Vehicle Subsidy System, Doing Well”
Electric vehicle energy density emphasized… LFP battery disadvantage
Introduction of battery environmental factors such as battery recycling
The electric vehicle subsidy system that will be implemented this year was announced recently.
There have been many changes compared to last year, and it seems that the direction has been set by grabbing the big peak, and after an overall supplement this month, it will be fully implemented starting in March.
Recently, there has been some controversy over the Ministry of Environment's announcement of a subsidy system for electric vehicles, with some complaining that it excludes Chinese batteries and electric vehicles, and that it is going against the times. However, I would like to point out that this is clearly wrong.
Also, some say that it is lazy to improve the system by taking a two-month break from January to February every year and implementing the subsidy system from March, and not preparing in advance at the end of the previous year and implementing it from January, but this is not an easy task.
Since the subsidy is implemented until the end of the year, it is difficult to improve the considerations for the following year in advance, but it is necessary to explain and coordinate the policy established based on the secured subsidy to all frontline companies.Because the process of determining the rate is not easy.
Especially in the era of electric vehicles that changes rapidly every year, it is not easy to include all the various conditions, such as all vehicles and charging infrastructure.
I also realized that it was very difficult to incorporate various opinions, including expert advice, along with persuasion.
In particular, as electric vehicle sales have been slowing down since the latter half of last year, there is ample subsidy left, so complaints that subsidies were not implemented in January and February have also disappeared.
The key point of the 2024 electric vehicle subsidy system is that it reinforces the problematic parts of last year's keynote and newly emphasizes the energy density of electric vehicles.
This is a coefficient that adds energy density by emphasizing the battery part of electric vehicles with short driving ranges and reduces the subsidy amount for electric vehicles with low driving ranges.
In the end, they complain that the ternary NCM battery, a domestically produced lithium-ion battery with high energy density, is advantageous, while the LFP battery, a lithium iron phosphate battery produced in China, is disadvantageous.
The part where the environmental friendliness of batteries, such as battery recycling, is introduced and quantified is also attracting attention.
The clear fact is that electric vehicles and batteries with long driving ranges naturally reduce the frequency of charger use, and electric vehicles with heavy batteries have a negative impact on infrastructure such as asphalt, so it can be said that high performance was naturally emphasized.
Of course, Chinese batteries are cheaper, but they are heavy and have low energy density, so they are bound to be at a disadvantage.
This means that manufacturers are asked to create electric vehicles with high-performance features and lightweight, compact batteries.
Also the battery The recycling problem is a serious problem that will come in the future.
It is mentioned that LFP batteries used in electric vehicles, which are already being scrapped in China, are all buried in the ground as they are not recycled.
Even within China, this part is being carried out unofficially, making it difficult to even find out about it.
This means that transparency is low, and using this battery in our country could pose serious problems.
Even in the case of internal combustion engine vehicles, more than 95% is already recycled and only a very small portion is actually disposed of, but LFP batteries that are not recycled pose serious environmental problems as approximately 500 kg of batteries are separated per vehicle.
Of course, recycling of newly developed batteries is also expected to be an important variable.
In Korea, the severity of the situation when these batteries are disposed of in the next few years will become an even greater environmental and social problem if we do not prepare for it now.
Considering these aspects, it can be said that the battery environmental factor was introduced in this subsidy system improvement.
Currently, the best way to promote electric vehicle sales and increase the cost-effectiveness of electric vehicles is to lower their prices.
The most accessible way to do this is to install inexpensive batteries.
So, this is the Chinese LFP battery that has recently started to gain popularity.
The three domestic battery companies have developed LFP batteries for ESS, but are still developing batteries for electric vehicles.
It is said that LFP batteries for electric vehicles will not be released until 2025.
In order to lower the price of electric vehicles, we must not neglect our efforts to implement 'half-price electric vehicles' by using low-priced batteries and applying new manufacturing technologies.
So, it is necessary to refer to various new technologies in Tesla's electric vehicle process.
It would be a good idea to prioritize installing Chinese LFP batteries over new technologies in order to lower electric vehicle prices immediately, but the intention is to develop various new technologies and new technologies that ensure battery recycling.
Some say that this could hinder the installation of Chinese LFP batteries in domestic cars and cause a loss of competitiveness, but this is short-sighted and should be interpreted as an intention to sufficiently consider environmental issues in the long term.
If we do not prepare in advance now, we will need to thoroughly prepare in advance for who will use the discarded portion of LFP batteries that will be released in 5-6 years and at what cost.
We cannot bury it in the ground like China, and we do not have the space, so as a developed country, we have no choice but to especially emphasize the environmental aspect.
The author would like to emphasize this part and mention that in the case of electric vehicles equipped with LFP batteries that have already been released, manufacturers and owners need to pay environmental taxes such as environmental improvement charges in consideration of future disposal.
If this part does not proceed, the environmental burden may be borne again in tax money by the people at a later date when it is disposed of.
This is why the battery environmental factor included this time is important.
This also means that we should actively consider this aspect for LFP batteries for mass-market electric vehicles used in domestic cars, and that we should not neglect efforts to lower prices through the development of new technologies in the electric vehicle process in the future. It seems to exist.
Of course, small and medium-sized enterprises that manufacture microcars, etc., are vocal about their dissatisfaction with this subsidy system.
Most companies are already on the verge of extinction as the market has shrunk significantly and they have no other way out.
As domestic battery companies are neglecting to supply batteries for small and medium-sized enterprises such as microcars and electric motorcycles, they have no choice but to import batteries from China, so the efforts of the battery industry and the government's attention are also important.
In the case of subsidies, it is necessary to consider subsidy policies, etc., considering the special characteristics of microcars and electric two-wheeled vehicles.
The core of this policy is the element of providing feedback to the domestic industry on electric vehicle subsidies, which has always been emphasized.
In a situation where each country, including China, the United States, and Europe, is wielding the sword with the logic of a great power with a country-first policy and swinging its policy, it can be said that it is difficult for us, who are based on exports, to implement such a blatant policy.
Ultimately, it can be said that it is essential to establish a system that can protect and support our industry without violating the FTA. We always think about electric vehicle subsidy policies with a cool head and by considering these various factors.
I would like to refer to the current situation in which the subsidies for domestic electric buses are still being debated.
More than 200 million won is being spent on subsidies per electric bus, but more than half of all electric buses in the country are made in China, so public dissatisfaction is also high.
There are many complaints that this means that precious tax money of the people is going overseas and that it is not helpful to domestic industries, so a balanced and ingenious solution that does not go against the FTA is required, and this is reflected in this subsidy system.
This subsidy policy will weaken Chinese electric vehicles and batteries, and domestic electric vehicle models equipped with LFP batteries, along with Chinese Teslas, will also be affected.
However, looking at the overall big picture, it can be said to be the right policy and direction.
While subsidies for electric vehicles and chargers are disappearing in the global market, we are the country that has had subsidy policies in place longer than any other country and has the highest subsidy amounts.
This also means that the Ministry of Environment is very enthusiastic about promoting electric vehicles.
This improvement plan basically starts by reducing the basic amount by 1 million won from 5 million won to 4 million won, and various policies are incorporated.
In the case of 1-ton electric trucks, which have high subsidy amounts and many problems, improvements are being made by starting differential payments that require increased driving distance and rapid charging.
Of course, there is still a lot of inequality in the 1-ton electric truck that I always mention, so there is a need for more effort.
I also have some questions about this improvement plan. It can be said that there is a provision to pay approximately 500,000 won for the introduction of new charger technology.
This can be said to be an item that presupposes the safety of electric vehicles and charging infrastructure.
In Korea, about 70% of urban areas are comprised of apartments and other group residences, which is the highest in the world, and so the conditions for charging infrastructure are the worst.
Ultimately, it can be said that underground parking lots are mainly used, and that approximately 90% of these parking lots are installed as underground charging stations.
Charging and electric vehicles in closed spaces are serious disqualifications in the event of fires and other disasters, and are the characteristics that the Fire Department and others view most seriously.
Taking these aspects into account, the Ministry of Environment formed a related council in the latter half of last year to address various safety issues, such as electric vehicle fires in closed spaces.
One of the most accessible safety methods is to charge your electric vehicle only about 90% of the way through.
In general, in outdoor spaces, depending on the vehicle, the battery is charged to a maximum of 97-98%, so if a problem occurs depending on the situation, overcharging can cause a fire. Therefore, in underground spaces, etc., the battery is charged to about 90% from the beginning to ensure safe charging.
The method developed in this way is said to strengthen the communication function between the charger and the electric vehicle, thereby forcibly suppressing electric vehicle charging at the charger.
Most apartment chargers are slow chargers, and since these chargers do not have a communication function for electric vehicles, it is difficult to actively prepare for overcharging. Therefore, the strategy is to install communication devices such as PLC modems in slow chargers to thoroughly control charging in the future.
The government subsidizes this cost through the charger subsidy system. It can be said that this is an item that was included with the concept of new technology.
This electric vehicle subsidy system is a desirable way to proceed with the big picture.
Although it is not perfect, it is a good policy that takes a big picture and proceeds with direction.
I would like to emphasize that this is a long-term policy, not a short-sighted one as some have pointed out.
In particular, the Ministry of Environment must implement environmental policies with a long-term perspective in the big picture. This is why the electric vehicle subsidy policy includes a big picture.