[LG Chem]
South Korean battery makers are in a race to take the upper hand in the production of new models targeting global clients as their business in China remains uncertain due to informal trade retaliation prompted by a diplomatic row over a US missile shield.
Industry leader LG Chem said it would produce a new battery with extended driving range next year, referring to NCM 811, a pouch-type battery which will allow electric vehicles (EVs) to drive up to 500 kilometers (310 miles) on a single charge.
The NCM 811 is a new model named after three chemicals -- nickel, cobalt and manganese -- and the proportion of nickel is high so that EV battery producers can save costs and extend the driving range.
"We will mass-produce (NCM 811) before the third quarter of next year," LG Chem president Lee Ung-beom told reporters on the sidelines of an industry conference.
LG Chem operates battery plants in China, the United States and Poland while its domestic rival, Samsung SDI, completed the construction of its EV battery plant in Hungary in May.
In 2015, LG Chem started the operation of its EV battery plant in China, eyeing growing demand on the back of Beijing's plans to tackle air pollution by introducing more eco-friendly cars.
But South Korean companies were forced to revise their business strategy in China because of its decision to stop subsidizing EV manufacturers using parts from foreign manufacturers. The move was seen as China's economic retaliation for the deployment of a Terminal High Altitude Area Defense (THAAD) system.
Concerns are growing among South Korean companies doing business in China after US troops completed the deployment of a full THAAD battery this week.
Lee said his company would unveil new EV batteries faster than SK Innovation which has disclosed a planned investment of 10 trillion won ( 8.8 billion US dollars) to nurture battery and chemical businesses as its next growth engine.
SK Innovation, a top refiner and lucrative subsidiary of the SK Group, has promised to secure 30 percent of the global battery market by 2025 with batteries that would allow an electric vehicle to travel 500 kilometers by 2018 and 700 kilometers by early 2020.
At Friday's session, SK Innovation said it would select a place for its EV battery plant in Europe this month. Hungary or Czechoslovakia was mentioned as a candidate. SK halted operation of its battery packing plant in China in February. The company still hopes to produce NCM 811 batteries starting next year, but it said it's not sure when the plant in China will resume production.
The trade ministry said that LG, Samsung and SK would invest some 2.6 trillion won by 2020 to upgrade EV battery technology and expand local production facilities.
reporter
Lim Chang-won
cwlim34@ajunews.com
