SEOUL – Despite the global slowdown in demand for electrified vehicles, South Korean battery manufacturers have increased their research and development (RandD) investments significantly this year.
According to Yonhap News Agency, the combined RandD investment of LG Energy Solution Ltd., Samsung SDI Co., and SK On Co. for the January-September period of this year totaled 1.78 trillion won (US$1.38 billion), marking a 12.5 percent increase from 1.58 trillion won during the same period last year, as per the latest quarterly reports.
Samsung SDI led the trio in RandD spending, with a 6.7 percent year-on-year increase to 836.4 billion won in the first nine months of 2023. LG Energy Solution followed closely, investing 730 billion won, a 15.2 percent rise from last year. SK On's investment surged by 29.6 percent to 220.7 billion won.
The focus of these local battery companies is on developing advanced technology. They are channeling their efforts into creating batteries with higher capacity, enhanced safety, and longer life. Moreover, they are working on the development of more cost-effective lithium iron phosphate and cobalt-free batteries, which are increasingly important in the competitive global battery market.