South Korea's New Plant Boosts EV Battery Supply Chain Independence
South Korea is strengthening its electric vehicle (EV) and battery supply chain with a new plant in the Saemangeum Industrial Complex, North Jeolla Province. The facility, built by LS-L&F Battery Solution (LLBS), aims to reduce reliance on China and serve as a strategic hub for localization.
The plant, constructed at a cost of KRW 1 trillion ($708 million), will start trial production in Q4 2025 and commence commercial operations in early 2026. Initially, it will produce 20,000 tons of battery precursor materials annually, with capacity set to expand to 120,000 tons by 2029.
The plant's output is sufficient to power 1.3 million EVs annually. L&F spokesperson confirms that the plant will cater to various applications, including premium and mass-market EVs, and large-scale energy storage systems (ESS).
To support the new plant, POSCO Holdings is constructing a nickel sulfate feeder plant nearby, scheduled for completion by December 2024. This plant will ensure a steady supply of raw materials for the battery materials factory.
The Saemangeum plant's completion signifies a significant step in South Korea's efforts to secure its battery supply chain. With an initial capacity of 20,000 tons, expandable to 120,000 tons by 2029, it will reliably supply cathode materials for diverse EV and ESS applications, reducing dependence on Chinese imports.
