Ministry of Trade, Industry and Energy Announces Market-Autonomous 3rd Generation xEV Industry Fostering Project
385.6 Billion Won Support Through 2025 to Lead Future Vehicle Market

The Ministry of Trade, Industry and Energy announced the "Market-Autonomous 3rd Generation xEV Industry Fostering Project" that supports the development of key eco-friendly vehicle components.
The xEV (electrically driven vehicle) project was promoted to enhance market competitiveness through the development of consumer-focused, safe, and convenient key component technologies for the early opening of the eco-friendly vehicle popularization era, including electric vehicles (BEV), fuel cell vehicles (FCEV), and plug-in hybrid vehicles (PHEV).

Over six years from this year through 2025, a total of 385.6 billion won (274 billion won in government funding) will be provided to domestic small and mid-sized automotive parts companies.

This year, 24 designated projects (39 billion won) will be prioritized, and from 2021 onwards, 47 projects will be sequentially supported. Support targets include ▲energy storage and charging ▲driving and power conversion ▲air conditioning and thermal management ▲hydrogen fuel cell field key component development, etc.

In line with the recent trend of changing automobile paradigms, the project supports domestic automotive parts companies to transition into future vehicle companies capable of competing with global corporations.

The primary focus is on achieving competitiveness at levels equivalent to internal combustion engines from a consumer acceptance standpoint, including expanding driving range, shortening charging time, and improving safety and convenience for eco-friendly vehicles. Major objectives include ▲expanding driving range per charge by 50% or more ▲improving driving efficiency by 20% or more ▲reducing charging time to 1/3 or less.

Priority support areas are ▲energy storage and charging (battery pack miniaturization and weight reduction, etc.) ▲driving and power conversion (motor efficiency improvement, etc.) ▲air conditioning and thermal management (thermal management system optimization, etc.) ▲hydrogen fuel cells (durability, etc.), which are core to eco-friendly vehicle competitiveness.

An official from the Ministry stated, "The project was designed to facilitate cooperation between demand and supply companies through demand-linked business operations," and added, "Through this project, we will provide a breakthrough for the automotive industry and support structural improvements in the domestic automotive parts industry to secure opportunities to capture the future vehicle market."