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Korean Industrial Insight No. 12 of AI, Semiconductors, Batteries and Electric vehicles |
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2025-05-02 |
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?. AI INDUSTRY TRENDS
1. Korean Government Allocates KRW 1.8 Trillion to Secure 10,000 GPUs and Develop Domestic AI Model
- Supplementary budget of KRW 1.8 trillion to implement follow-up measures for strengthening national AI capability
- KRW 1.46 trillion allocated to secure 10,000 GPUs within this year. AI Elite teams also to be selected and supported.
The South Korean government plans to secure 10,000 advanced Graphics Processing Units (GPUs) within the year, utilizing a supplementary budget of 1.8 trillion won dedicated to the artificial intelligence (AI) sector, aiming to enhance AI computing infrastructure. A project valued at approximately 200 billion won will also be officially launched to develop a domestic AI model capable of competing on a global level.
The Ministry of Science and ICT (MSIT) announced that it will actively pursue the “Follow-up Measures for Strengthening National AI Capability,” leveraging the AI sector supplementary government proposal that was approved at the cabinet meeting on the 18th.
On February 20, the MSIT, in cooperation with relevant ministries, announced the “Plan to Strengthen National AI Capabilities through Expansion of AI Computing Infrastructure” at the 3rd National AI Committee meeting. This plan includes key strategies focused on ⊂expanding AI computing infrastructure, ⊂developing next-generation AI models, and ⊂accelerating AI transformation.
The recently announced follow-up measures are designed to fully implement the National AI Capability Strengthening Plan following the government's supplementary budget proposal of 1.8 trillion won for the AI sector. Through immediate and efficient financial allocation, the goal is to rapidly advance national AI capabilities by strategically concentrating resources.
To accelerate the expansion of AI computing infrastructure, the government will secure 10,000 advanced GPUs based on clustering within the year, with a budget of 1.46 trillion won. To address urgent domestic AI computing demand, support will be provided for the additional rental and utilization of 2600 advanced GPUs held by the private sector (172.3 billion won).
The budget for demonstration projects aimed at supporting the early commercialization of domestic AI semiconductors will also be expanded from 29.8 billion won to 74.2 billion won. Through this supplementary budget, the government plans to provide substantial assistance, based on direct support, to help domestic AI semiconductor companies with high potential commercialize NPUs (Neural Processing Units) within the critical timeframe.
For this, the government will build a domestic NPU demonstration infrastructure optimized for large-scale AI computing commercial services and expand demonstration support for pioneering new markets, including on-device AI and overseas demonstrations.
Furthermore, by directly providing design software, product manufacturing, and verification support, it plans to provide timely assistance for the commercialization of promising startups. Once the National AI Computing Center (SPC) is selected, active efforts will be made to introduce domestic AI semiconductors into the center starting this year.
Institutional support to promote private investment in AI computing infrastructure will also be strengthened. Earlier this year, in March, the government amended the “Restriction of Special Taxation Act” and designated AI as a national strategic technology to reinforce tax support for advanced AI research and development (R&D) and investment in AI infrastructure. Furthermore, plans are underway to specify the scope of strategic technologies through the amendment of lower statute. Institutional support related to location, facilities, and power to promote private investment in AI data centers will also continue.
The “World Best LLM Project (tentative name)”, which aims to develop global-level AI models by selecting and intensively supporting elite AI teams, will also begin in earnest this year with a budget of 193.6 billion won. Up to 5 Elite teams consisting of highly capable domestic AI companies will be selected and provided with intensive support for necessary resources such as GPUs, data, and talent for up to three years. Support will then be concentrated on elite teams with outstanding performance through competitive annual evaluations.
Support will also be provided for securing and training world-class AI talent. “Global AI Challenge” for innovative AI talents is planned to be held in the second half of the year (10 billion won). A new initiative, the “AI Pathfinder Project (tentative name)”, will be launched this year (5 billion won) to provide support of up to 2 billion won per year for three years when attracting top-tier overseas AI researchers to Korea.
To cultivate top-tier global researchers in the field of AI convergence (AI + Science and Technology), 30 billion won will be invested in 400 outstanding domestic and international postdoctoral researchers, providing them with world-class treatment and supporting group and convergence research.
2. LG Electronics Targets AI Data Center Business. Unveils Advanced Liquid Cooling Systems
LG Electronics is aggressively expanding its thermal management solutions business, leveraging its HVAC (Heating, Ventilation and Air Conditioning) technology. In particular, the company is accelerating its efforts in the liquid cooling sector, which is optimized for rapidly growing data centers in the era of artificial intelligence (AI).
LG Electronics announced on the 13th that it will participate for the first time in “Data Center World (DCW) 2025”, which will be held in Washington D.C., USA, from November 14th to 17th (local time).
The company plans to solidify its position as a prepared player in the data center market by showcasing a diverse lineup of cooling solutions developed based on its HVAC technology, including liquid cooling solutions (CDU; Coolant Distribution Unit). DCW is an exhibition where big tech and semiconductor companies also participate, featuring seminars and business meetings on various topics such as AI technology and trends, infrastructure construction, and energy efficiency.
The liquid cooling solution is a method that directly attach metal cooling plates (cold plates) to high heat-generating chips such as CPUs and GPUs within servers and then send coolant through these plates to dissipate the heat. As CPU and GPU computations increase, heat generation rises, making effective heat management solutions essential. AI data centers generate more heat than traditional data centers due to high server rack density and large amounts of chip usage. Direct chip cooling method is gaining attention as a next-generation technology because it requires less installation space and offers higher energy efficiency compared to air cooling methods.
LG Electronics' CDU is a solution that directly cools chips within data centers, achieving stability and high efficiency through core component technology. The virtual sensor technology applied in the CDU ensures the stable operation of the cooling system even with faulty readings, by utilizing data from the pump and other sensor data to correct the faulty sensor value.
Furthermore, by using a pump equipped with high-efficiency inverter technology, it discharges only the necessary amount of coolant depending on the situation, enhancing energy efficiency. LG Electronics aims to complete the development of the CDU by the first half of this year and target full-scale supply to global customers' AI data centers within the year.
The company will also introduce “Oil-Free Inverter Turbo Chiller”, a representative product in its chiller lineup. This product lowers the room temperature within data centers through air cooling and operates stably using AI technology. It incorporates magnetic bearing technology, which levitates and rotates the shaft of a high-speed compressor motor using electromagnetic force, thereby reducing friction loss and increasing energy efficiency. Additionally, the company will unveil the FWU (Fan Wall Unit), which precisely controls airflow using its independently developed high-efficiency fans and motors.
LG Electronics also proposes a hybrid solution optimized for the structure of next-generation AI data centers. This approach combines liquid cooling and air-cooled methods to provide the optimal cooling solution for AI data centers that consume high power and intensively dissipate significant heat.
Additionally, the BECON (Building Energy Control) system for integrated building management through AI-based real-time energy analysis will be showcased. BECON helps reduce energy consumption by precisely analyzing temperature and power usage within buildings and automatically controlling the system.
LG Electronics recently established a dedicated AI data center testbed (LG AI Data Center HVAC Solution Lab) at its Pyeongtaek Chiller plant to provide customers with optimal solutions by replicating various environmental conditions of AI data centers. Systematic cooling tests are currently being conducted at this testbed by installing server racks and utilizing CDUs, chillers, and FWUs. Research and development are also underway on 'immersion cooling,' a method that involves directly submerging servers and equipment in a dielectric liquid.
3. AI Judges Trusted More Than Human Judges∼ 64% of Koreans
More than six out of ten Koreans say they would trust an AI judge more than a human judge, according to a recent survey. This poll reflects the public sentiment that AI judges would be fairer and more reliable than human judges, which comes amidst a recent decline in public trust in the courts.
In a survey of 1,050 Korean adults regarding their trust in court rulings based on media reports, only 44% expressed trust ("very trustworthy" 4%, "somewhat trustworthy" 40%).
In contrast, responses indicating distrust in judges' rulings, such as “not very trustworthy” (42%) and “not trustworthy at all” (14%), constituted a majority (56%). Distrust in judges' rulings was higher among conservatives (67%) compared to liberals (49%). A Gallup Korea survey conducted from April 8-10 also found that only 46% of respondents trusted the courts, falling short of half.
When asked about sentencing consistency, 88% of respondents stated court rulings vary depending on the individual judge, while only 12% believed rulings are consistent. Respondents across all demographics, regardless of gender, age, region, or ideology, reported perceiving differences in rulings based on the judge.
Regarding the question, “How much do you think the political and economic status of the accused influences a judge's ruling in court?”, a large majority (86%) responded that it does influence, with 35% indicating “significantly influences” and 51% indicating “mostly influences”. In contrast, only 14% responded that it does not influence (“not very much influences” 12% and “not at all influences” 2%). The response that the political and economic status of the accused influences a judge's ruling was highest among the lower-income group (90%) and also constituted a majority in the middle-income (85%) and upper-income (79%) groups.
Distrust regarding court rulings has led to a preference for AI judges. When asked which they would trust more if AI judges were introduced in court, an AI judge or a human judge, AI judges were preferred by a majority of 64%, with human judges at 36%.
Preference for AI judges was higher among men (69%) than women (59%). This preference also showed an inverse correlation with income level, with higher favorability noted among lower-income individuals (67%), followed by the middle-income group (63%), and the upper-income group (59%). While a Korea Research survey in December 2020 indicated a less pronounced difference in preference between AI judges (48%) and human judges (39%), the recent findings demonstrate a clear increase in the preference for AI judges.
?. SEMICONDUCTOR INDUSTRY TRENDS
1. Nvidia Surpasses Samsung Electronics to Lead Global Semiconductor Market∼ SK Hynix Rises to Fourth
Worldwide semiconductor revenue increased by 21% year-on-year, while “Foundry leader” TSMC was excluded from the survey.
Nvidia has ascended to the top position in semiconductor vendor revenue last year, surpassing both Intel and Samsung Electronics.
Samsung Electronics maintained its second-place ranking, overtaking Intel which was number one last year. SK Hynix, showing growth driven by its competitiveness in High Bandwidth Memory (HBM), rose to global fourth place.
According to market research firm Gartner, worldwide semiconductor revenue totaled $655.9 billion in 2024, a 21% increase from the previous year ($542.1 billion). This figure is approximately $30 billion higher than the preliminary forecast announced at the beginning of this year.
The shifts in revenue figures led to changes in the semiconductor vendor rankings.
Initially, Gartner had predicted that Samsung Electronics would reclaim the top position from Intel, but Nvidia saw a dramatic surge in the final assessment.
Nvidia, often cited as the biggest beneficiary of the AI era, saw its semiconductor revenue skyrocket by 120.1% year-on-year to $76.7 billion, securing the top spot.
Nvidia's revenue surged, driven by the sharp increase in demand for dGPUs, which are primarily used for data center artificial intelligence (AI) workloads.
Samsung Electronics, which ranked second, recorded semiconductor revenue of $65.7 billion, a 60.8% increase year-on-year.
Samsung Electronics maintained its second place ranking following 2023, showing an upward trend in both DRAM and flash memory sectors due to a sharp price rebound caused by semiconductor supply and demand imbalance.
In contrast, Intel's revenue last year was $49.8 billion, marking a modest 0.8% increase from the previous year, reflecting less significant gains from the surge in AI demand.
Intel has been experiencing one of its most severe crises on record due to weak performance last year, implementing large-scale layoffs and postponing investments in some factories. CEP Pat Gelsinger also stepped down after four years.
SK Hynix, which holds a dominant position in the HBM market, recorded revenue of $44.2 billion, a 91.5% growth from the previous year.
SK Hynix's growth rate was the second highest among the top 10 companies, following Nvidia, and it rose two positions in the overall ranking to secure fourth place.
However, Taiwan-based TSMC, the world's leading foundry company specializing solely in contract semiconductor manufacturing, was excluded from this survey.
TSMC had previously reported its annual net revenue for last year totaled 2.8943 trillion New Taiwan Dollars (approximately $88.6 billion), a 33.9% increase from the previous year. Including TSMC, it would effectively be the world's leading semiconductor company by revenue last year.
Gartner interpreted that "the changes in the revenue rankings of the top 10 semiconductor vendors last year were a result of the sharp increase in demand for AI infrastructure combined with a 73.4% increase in global memory revenue."
Table 1. Top 10 Global Semiconductor Suppliers by Revenue 2023-2024 (Unit: Million USD)
2024 Rank 2023 Rank Supplier 2024 Revenue 2024 Market Share (%) 2023 Revenue 2024-2023 Growth Rate (%)
1 3 Nvidia 76,692 11.7% 34,846 120.1%
2 2 Samsung Electronics 65,697 10.0% 40,868 60.8%
3 1 Intel 49,804 7.6% 49,427 0.8%
4 6 SK Hynix 44,186 6.7% 23,077 91.5%
5 4 Qualcomm 32,976 5.0% 29,229 12.8%
6 5 Broadcom 27,801 4.2% 25,613 8.5%
7 12 Micron Technology 27,619 4.2% 16,153 71.0%
8 7 AMD 24,127 3.7% 22,307 8.2%
9 8 Apple 20,51 3.1% 18,052 13.6%
10 13 MediaTek 15,934 2.4% 13,451 18.5%
Others 270,536 41.2% 269,031 0.6%
Total 655,882 100.0% 542,054 21.0%
*Source: Gartner (April 2025)
Hanmi Semiconductor May Partner with Samsung Amid Conflict with SK Hynix
The dispute between Hanmi Semiconductor and SK Hynix over TC bonder equipment for High Bandwidth Memory (HBM) has emerged as a significant industry issue. As the exclusive supply relationship shows signs of strain, attention is being drawn to the possibility of Hanmi Semiconductor collaborating with Samsung Electronics.
2. Gyeonggi Province and AICT Offer Semiconductor Training for Officials
Gyeonggi Province announced that it is holding competency enhancement training for 80 officials from the province, cities, and counties, and affiliated organizations involved in semiconductor-related work from 24th to 25th at the Advanced Institute of Convergence Technology (AICT).
The training program covers various topics, including the history and future public tasks of semiconductors, Gyeonggi Province's strategy for fostering semiconductor materials, components, and equipment, and the nurturing of advanced packaging technology and Gyeonggi Province's role.
Discussions will also be held on the current status and policy direction of the fabless industry through meetings with industry professionals in the fabless sector.
Additionally, participants will visit the Semiconductor Technology Center within AICT to tour the latest semiconductor analysis equipment and cleanroom facilities.
A Gyeonggi Province Semiconductor Industry Division official stated, "We have organized this job training to assess the current state of the semiconductor industry and explore policy directions." He added, "We hope this training will be helpful in the policy-making process for officials in charge of semiconductor affairs at local governments and affiliated institutions."
3. SK Hynix Accelerates in the AI semiconductor Race with HBM
- Revenue soars 41.9% YoY to 17.6 trillion won, achieving the second-highest quarterly performance despite off-season
SK Hynix achieved a “super earnings surprise” in the first quarter of this year, far exceeding market expectations thanks to its overwhelming technological leadership in High Bandwidth Memory (HBM) and high-performance DRAM, key components leading the artificial intelligence (AI) era.
Posting record-breaking results in the first quarter, which is traditionally considered an off-season for the semiconductor industry, the company demonstrated remarkable performance, notably its operating profit surpassing Samsung Electronics' total results for two consecutive quarters.
According to SK Hynix's preliminary consolidated results for the first quarter of this year, announced on the 24th, revenue reached 17.6391 trillion won, marking a significant 41.9% surge compared to the same period last year.
Operating profit dramatically increased by 157.8% year-on-year to 7.4405 trillion won, far exceeding the average securities firms forecast of 6.5993 trillion won compiled by financial information provider FnGuide. Net profit for the same period soared by a remarkable 323% year-on-year to 8.1082 trillion won.
This performance is SK Hynix's second-highest quarterly result on record, following the all-time high achieved in the preceding quarter (Q4 last year). Notably, for the first quarter alone, both revenue and operating profit set new historical records. The operating profit margin also reached 42.2%, improving to a level close to that of Taiwan's TSMC (48.5%), which leads the AI semiconductor foundry market, demonstrating remarkable growth in terms of profitability.
The company explained, “In the first quarter, the memory market showed faster-than-expected improvement, driven by factors such as intensified competition in artificial intelligence (AI) development and customers' demand for inventory accumulation.” Furthermore, it was analyzed that the strategic expansion of sales for 'high-value-added products' including high-performance DRAM like DDR5 and HBM, despite the seasonal off-peak, served as a decisive factor for this 'surprise performance'.
Notably, HBM, which has emerged as an indispensable component for AI semiconductors, has already seen its production volume for this year completely sold out. SK Hynix anticipates HBM sales this year to approximately double compared to the previous year. Furthermore, company expects global HBM demand to continue growing explosively at an average annual rate of about 50% through 2028, driven by global AI infrastructure investments.
This business strategy centered on high-performance DRAM also led to changes in market shares. According to market research firm Counterpoint Research, SK Hynix recorded a 36% share of the global DRAM market by revenue in the first quarter of this year, surpassing Samsung Electronics (34%), which had maintained an unshakeable first place for over 30 years, for the first time. It is assessed that the significant increase in demand for high-capacity server DRAM, particularly DDR5-based 96-gigabyte (GB) modules, contributed to the leap forward in the DRAM market.
Meanwhile, the AI boom is further brightening SK Hynix's long-term outlook. The release of efficient open-source-based AI models like 'DeepSeek' earlier this year has significantly lowered the entry barrier for the AI development market, which is expected to revitalize the AI ecosystem and further boost demand for AI servers.
The company emphasized that in this process, demand is significantly expanding not only for HBM but also for high-capacity server DRAM. To strengthen its unchallenged leadership in the HBM market, SK Hynix plans to increase the sales proportion of its fifth-generation HBM product, HBM3E 12-layer, to over half of the total HBM3E in the second quarter, and is actively pursuing development and customer certification for the early mass production of the sixth-generation HBM product, HBM4 12-layer.
Positive outlooks extend to NAND flash business as well. As generative AI inference services demand high quality, increased demand is anticipated for high-performance TLC (Triple Level Cell) SSDs needed for related infrastructure upgrades. Also, with the focus shifting towards high-capacity QLC (Quadruple Level Cell) SSDs, particularly those centered around 128 terabytes (TB), the company plans to actively address this trend.
Despite growing global uncertainties, SK Hynix is preparing for future growth by executing investments primarily focused on high-performance products with secured profitability. The first fab in Yongin, which broke ground in February, is scheduled for completion in the second quarter of 2027 as planned, and the M15X fab under construction in Cheongju is targeted to commence operation in the fourth quarter of this year.
?. BATTERY INDUSTRY TREND
1. Battery Makers Compete to Develop Game-changer “Dry Electrode Process”
- Greener, more efficient alternative to wet method
- Nanointech targets pilot line construction by year-end
- Yunsung F&C developing dry electrode mixing technology
- Market projected to grow to 3.55 trillion won by 2033
- Expert calls for stronger government support
South Korean small and medium-sized enterprises (SMEs) in the secondary battery materials, components, and equipment sector are betting heavily on the development of dry electrode process technology, regarded as a ‘game changer' in battery manufacturing. The electrode process, an initial step in battery production involving the creation of cathodes and anodes, is gaining prominence as a next-generation core technology. This is because the dry process, which utilizes solid powder, is more environmentally friendly and efficient compared to the wet process that uses a liquid organic solvent (NMP). Eliminating the need for solvent drying and recovery equipment results in exceptional reductions in manufacturing costs and carbon emissions. Particularly as Tesla, a leader in the secondary battery market, officially announced dry electrode manufacturing this year, securing related technological capabilities has become a necessity rather than an option for secondary battery materials, components, and equipment SMEs.
According to industry sources on the 20th, Nanointech, a secondary battery equipment manufacturer, plans to build a pilot line for dry electrode process equipment as early as the end of this year through joint development with Fraunhofer, Germany's largest applied science research institution.
The company is researching mixing process equipment that blends the active materials, conductive additives, and binders for the cathode and anode during the electrode process, as well as coating process equipment that applies the cathode and anode to the current collector. Nanointech is reported to have invested approximately 10 billion won in this project, which accounts for 16% of the company's revenue of 61.2 billion won last year. Park Young-sik, CEO of Nanointech, emphasized, "The dry process can reduce energy consumption by up to 47%, process costs by 19%, and manufacturing facility size by less than half compared to the existing wet process." He added, "If equipment development is successful, we will achieve annual revenue of 100 billion won."
Yunsung F&C, a manufacturer specializing in mixing within the electrode process, is also dedicated to research on improving the efficiency of the dry electrode mixing process in collaboration with institutions such as the Korea Institute of Machinery & Materials. The company has commenced technology development aimed at significantly increasing the production volume of the domestic dry electrode process, which is currently at a laboratory scale. KGA, which is preparing for KOSDAQ listing, is also achieving results in the development of dry electrode process equipment. The company successfully developed dry electrode mixer equipment in February of this year and registered three related technologies as patents. There are also companies that have secured orders for dry electrode process equipment. PNT, for instance, signed a contract last June to supply dry electrode process coating equipment to Tesla's factory in Texas, USA.
The reason secondary battery materials, components, and equipment companies are making an all-out effort in developing the dry electrode process is because global companies such as Tesla, LG Energy Solution, Samsung SDI, and SK On are accelerating the commercialization of the dry process. According to data from global market research firm VMR, the dry electrode process market is projected for rapid growth from 1.7054 trillion won in 2024 to 3.5535 trillion won in 2033.
2. World’s Largest Battery Maker CATL Establishes Korean Subsidiary
- Targeting EV and ESS markets with LFP batteries
- Securing production base through cooperation with Korean companies
- Potential strategy to bypass U.S. and EU trade restrictions
According to industry sources on the 26th, it has been confirmed that CATL is preparing to establish a legal entity in South Korea. A CATL official recently met with a reporter and stated, "We plan to establish an official subsidiary in Korea." When asked about the timing, the official said it would "happen soon," indicating that preparations are significantly underway.
CATL has so far operated a simple office in Korea, primarily providing technical support such as after-sales service to its customers. CATL's move to elevate its organizational structure is interpreted as an intention to fully launch its strategy to target the Korean market.
Unlike representative offices or branches that operate dependently on the parent company, a subsidiary is established through local capital investment. This means it becomes an independent entity capable of engaging in its own business and management activities.
CATL's entry into the Korean market is anticipated to have considerable impact. CATL is the world's leading electric vehicle battery market player. According to market research firm SNE Research, CATL recorded the top position with a 35.9% market share based on shipments in the second quarter of last year. During the same period, the combined market share of the three major Korean battery companies was only 19.9%. CATL is expected to intensify its efforts to target the domestic electric vehicle and energy storage system (ESS) markets, leveraging its strength in Lithium Iron Phosphate (LFP) batteries.
LFP batteries, primarily led by Chinese battery manufacturers, have lower energy density and are heavier than the ternary (NCM/NCA) batteries mainly produced by Korean manufacturers. However, they offer advantages in higher safety and a price that is over 30% lower. Recently, global automakers are increasingly adopting LFP batteries to reduce the cost of electric vehicles.
CATL may also potentially use Korea as a bridgehead for global expansion. Amidst intensifying regulations on Chinese-made batteries due to the U.S. Inflation Reduction Act (IRA) and Europe's Critical Raw Materials Act (CRMA), this move could be an attempt to bypass these regulations and pursue entry into the European and North American markets through cooperation with Korean companies or securing production bases within Korea.
Indeed, the presence of Chinese battery-related companies in Korea is growing. Battery equipment companies such as Wuxi Lead Intelligent Equipment, Hangke Technology, and Lyric Robot have established branches in Korea or formed joint ventures with Korean companies. Chinese battery manufacturer Svolt is known to have established a Korean subsidiary in 2020, and BYD established a Korean subsidiary in 2016 and is also preparing to enter the passenger vehicle market following commercial vehicle sales.
Furthermore, with electric vehicle demand showing signs of stagnation, targeting the growing ESS market is also anticipated. CATL is the leading company in the global ESS market as well, holding approximately 40% market share.
3. LG Energy Solution Seeks Growth Partners to Lead Future Battery Market
- Hosts global recruitment event ‘BTC in Chicago’ for Master’s and Ph.D. graduates from leading universities and research institutions
- About 40 attendees from MIT, Stanford, UC Berkeley, Cornell, University, and more
Kim Dong-myung, CEO of LG Energy Solution, along with key executives, headed to the United States to secure pivotal talent who will lead the future battery market.
LG Energy Solution announced that it hosted 'BTC (Battery Tech Conference)', a global recruitment event for outstanding talent, in Chicago, USA.
BTC is a recruitment-linked event where LG Energy Solution annually invites Master's and Ph.D.-level talents from around the world to introduce the company's technology and vision. Following events in San Francisco in 2023 and New York in 2024, this year's conference was held in Chicago.
CEO Kim Dong-myung stated, "The battery industry holds immense growth potential to transform the future of humanity," adding, "We organized this event to find 'growth partners' who will shape the future with LG Energy Solution amidst infinite possibilities."
Approximately 40 Master's and Ph.D. candidates invited from leading U.S. universities and research institutions, including MIT, Stanford, University of California, Berkeley, Cornell, University of Chicago, and Northwestern University, attended the event.
Key executives from LG Energy Solution were present, including CEO Kim Dong-myung, CTO (Chief Technology Officer) Kim Je-young, CDO (Chief Digital Officer) Lee Jinkyu, CHO (Chief Personnel Officer) Kim Ki-soo, and Michigan Chairman Choi Dae-sik.
CEO Kim Dong-myung added, " I hope this event today serves as the initial platform for taking a leap towards the future, moving beyond a simple exchange of information."
Networking was also actively conducted at the event. Participants had the opportunity to share their respective research fields and grasp the latest research trends through presentations by invited talents and poster sessions. LG Energy Solution's working-level staff also directly introduced key battery technologies and specific research cases, showcasing the company's differentiated technological capabilities.
Meanwhile, LG Energy Solution is scheduled to host 'BTC Europe' in Frankfurt, Germany, at the end of June. This marks the first time the BTC event, which has been held annually in the U.S. and Seoul since 2023, will be expanded to the European region.
?. ELECTRIC VEHICLE INDUSTRY TRENDS
1. Jeff Bezos’ New Electric Vehicle Gamble May Benefit Korean Battery Makers
As Amazon founder Jeff Bezos enters the electric vehicle market, 'K-batteries' appear to be positioning themselves as key component suppliers for U.S. automakers.
According to industry sources, 'Slate', a promising U.S. EV startup that recently unveiled a new model, is the second EV company Bezos has invested in, following Rivian, where he pursued a premium strategy.
The new vehicle from Slate is characterized by its focus on a broader consumer base, leveraging its reasonable price and diverse customization features. There is even speculation that Slate is an anagram of Tesla, suggesting Bezos's ambitions to directly target Tesla.
Slate's new vehicle will be equipped with SK On's high-nickel NCM (Nickel, Cobalt, Manganese) batteries. The supply contract is reportedly valued at approximately 4 trillion won. Industry observers view this as a strategic choice of battery supplier by Slate, considering factors such as its U.S. local production capabilities and supply chains, including those related to Tesla. SK On has been proactively investing in the U.S. since 2019 to establish a battery production system and is currently constructing joint venture plants with partners like Ford and Hyundai Motor Group, in addition to its operational standalone plant in Georgia.
Among non-Chinese companies currently mass-producing batteries in the U.S., SK On is virtually the only company that does not supply batteries to Tesla. There is also a perspective that this might have been influenced by the recent trend of some battery companies converting part of their production lines to Energy Storage Systems (ESS) use as a strategy to overcome the 'Chasm' (a temporary slowdown in demand). This is because there are a limited number of companies capable of reliably supplying batteries in accordance with the launch schedule of a new company like Slate.
Bezos's collaboration with K-batteries is not new, with SK On not being the first partner. Rivian's first electric pickup truck, the R1T, in which he previously invested, was equipped with Samsung SDI batteries, while the electric SUV, the R1S, was equipped with LG Energy Solution batteries. With the decision to install SK On batteries in the new Slate pickup truck, Bezos has now partnered with all three major Korean battery companies.
Bezos's investment in the EV business is interpreted not merely as business diversification but as an extension of his platform strategy. Amazon has been strengthening its platform competitiveness by building comprehensive infrastructure encompassing not only distribution and logistics but also its AI voice assistant platform (Alexa), cloud services (AWS), autonomous driving (Zoox), and satellite internet (Project Kuiper). EVs, in particular, are closely linked to Amazon's existing technology infrastructure such as AWS, Alexa, and Zoox. Indeed, Slate defines itself not as a simple car manufacturer but as a truck platform maximizing customization features.
2. SK On to Supply Batteries for 300,000 U.S. EV Startup Vehicles
- Approximately 20 GWh to be supplied over 6 years starting next year
- Adds customer diversification as a growth engine
SK On has successfully secured an additional new customer in the United States. By acquiring a promising startup as a customer, alongside its existing global automakers, the U.S. market appears to be firmly positioning itself as a key growth engine for SK On.
SK On announced on the 25th that it has been selected as the battery supplier for the U.S. EV startup 'Slate'. Under this agreement, SK On will supply batteries totaling approximately 20 gigawatt-hours (GWh) over six years, from next year until 2031. This volume is sufficient for installation in approximately 300,000 mid-size EVs.
If Slate’s production volume increases, the two companies have agreed to expand the battery supply volume accordingly.
Slate is an EV startup established in Michigan, USA, in 2022. It plans to launch a 2-door electric pickup truck next year that offers both price competitiveness and distinctive characteristics. The target price is set below $30,000. The strategy is to reduce the selling price by simplifying the vehicle manufacturing process and design.
This vehicle is planned to be equipped with SK On's high-nickel NCM (Nickel, Cobalt, Manganese) batteries. This product is recognized for its excellence across various aspects including energy density, safety, and performance, and is particularly in high demand in the U.S. market, where long driving range on a single charge is emphasized.
Battery production will take place at SK On's U.S. plants. SK On has been proactively investing in the U.S. since 2019, commencing factory construction and initiating battery mass production in 2022. Since then, it has built customer trust by establishing a stable production system. SK On is anticipating the start of commercial operations (SOP) for a total of three production bases in the U.S. this year and next year alone. By the end of 2026, SK On's U.S. plants are expected to account for 50% of its global production capacity (CAPA).
This partnership is also significant as it expands SK On's battery supply to include mid-to-low price vehicle models. Previously, SK On has primarily supplied batteries for premium vehicle segments. By providing high-performance batteries to a wider range of consumers, it is expected to further contribute to the popularization of EVs.
Lee Seok-hee, CEO of SK On, emphasized, "This collaboration is a confirmation of SK On's technological capabilities and U.S. mass production capacity." He added, "The U.S. is a core strategic market for SK On, and we plan to continue securing a diverse range of customers by providing high-quality, locally produced batteries."
3. EREVs Emerge as New Opportunity for Battery Makers Amidst EV Slowdown
- Market growing approximately 20% annually∼ OEMs including Hyundai accelerating entry, led by China.
- Higher battery capacity than hybrids. K-batteries in talks with major OEMs
Automakers (OEMs) experiencing the "Chasm" (a temporary slowdown in demand) in electric vehicles are eyeing Extended Range Electric Vehicles (EREVs) as a niche market to complement EVs.
Expectations are rising that the significant expansion of the EREV market in the future could provide a new revenue stream for the battery industry, which has been grappling with slowing downstream demand.
According to industry sources, Kia is developing an electric pickup truck targeting the U.S. market, while also simultaneously considering the development of an EREV model to complement it.
Kia CEO Song Ho-sung recently stated at the '2025 CEO Investor Day', "The EV pickup is central to Kia's North American pickup strategy, and we are also developing an EREV alongside it," adding, "We are reviewing in parallel to complement the market response with EREVs if responding with EVs alone has limitations."
Similarly, Hyundai Motor announced plans to commence EREV sales in North America and China by late 2026, with full-scale sales beginning in 2027, and is accelerating technology development.
An EREV, while typically running solely on its motor like an EV, is a vehicle equipped with a small engine that functions as a generator to assist in charging the battery when the charge level is insufficient.
They offer advantages such as a relatively lower vehicle price due to being equipped with 50-70% of the battery capacity compared to EVs, and they lower limitations linked with insufficient charging infrastructure.
The EREV market has already commenced in China, with vehicles being released. According to automotive market research firm LMC Automotive, approximately 1.31 million EREVs were sold in China last year, more than doubling the 650,000 units sold in 2023.
Leading EREV player Li Auto sold a total of 525,000 EREVs last year, while Seres and Changan Automobile's Deepal sold approximately 410,000 and 150,000 units, respectively.
Global OEMs are also accelerating EREV launches. Ram, a brand under Stellantis, is scheduled to release the Ramcharger 1500 EREV pickup truck in the second half of the year, and Ford plans to unveil an EREV version of its flagship commercial van, the Transit, before 2027.
The market views EREVs as a transitional technology in the shift to EVs, potentially replacing Plug-in Hybrid Electric Vehicles (PHEVs).
As PHEVs are equipped with only about 20% of the battery capacity of an EV, the emergence of EREVs, which carry more than twice that amount of battery, is expected to help improve demand for the battery industry.
An industry source stated, "Since EREVs are primarily produced as mid-to-large vehicles, they can be equipped with a considerable amount of battery capacity, even if it's less than comparable EVs." They added, "The fact that existing battery cells can be utilized for EREV batteries, reducing R&D costs, is also positive."
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KIPO started intensively monitoring the distribution of design infringement products (April ~ November).(News Letter No. 552)
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Korean Industrial Insight No.14 of AI, Semiconductors, Batteries and Electric vehicles in Chinese
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