Daegu, the Global Mecca of Next-Generation Battery Industry ... Establishment of 'Secondary Battery' Commercialization and ESS Industrialization Support Center

Daegu City Establishes Strategy to Foster Next-Generation Battery Industry

Energy Industry Cluster Layout.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Daegu City has officially entered the secondary battery industry by establishing a next-generation battery development strategy.

The plan is to promote a regional industrial development strategy as the secondary battery industry grows into a new giant market comparable to semiconductors.

The global secondary battery market is fiercely contested by Korea, China, and Japan, which together hold a 95% market share.

Daegu City has a formed secondary battery industry value chain, making the growth potential in next-generation batteries and used battery sectors very high.

As of last year, the global secondary battery market shares were known to be Korea 44.1%, China 33.2%, and Japan 17.4%.

Recently, the Ministry of Trade, Industry and Energy announced the ‘2030 Secondary Battery Industry Development Strategy,’ which includes a 40 trillion KRW investment by the three major battery companies by 2030 and comprehensive government support plans for R&D, tax, and finance.

It particularly includes policies for developing next-generation battery manufacturing technologies and core element technologies, fostering core companies in secondary battery materials, parts, and equipment (SoBuJang), and creating various new demand markets through revitalizing the used battery market.

Daegu City plans to gradually establish the ‘Next-Generation Battery Commercialization Support Center’ and the ‘Energy Storage System (ESS) Industrialization Support Center’ utilizing used electric vehicle batteries by 2026 within the energy industry cluster being developed on the incineration plant site (81,175㎡) in Dalseong 2nd Industrial Complex.

Centered on this, the city plans to create a ‘Next-Generation Battery Park’ that concentrates the secondary battery industry through corporate attraction and infrastructure support.

The Next-Generation Battery Park will support joint technology development for companies on high-efficiency, high-performance lithium-ion batteries, high-performance, high-safety next-generation all-solid-state batteries, as well as performance certification, product production, and demand creation for used batteries.

To resolve the shortage of on-site experts, the city will collaborate with academia to train the workforce needed by companies, thereby helping to strengthen the competitiveness of local businesses.

Additionally, the plan includes attracting companies related to battery packaging and anode materials, which are weak areas in the region, to complete the value chain of the next-generation battery industry.

By collaborating with agricultural machinery, robotics, and mobility companies, Daegu aims to take the lead in the future new industry in the ‘Battery of Things’ era, and to specialize the ESS industry to achieve carbon neutrality by 2050, actively supporting efficient power grid management and fostering new energy service industries in line with the final energy transition centered on electricity.

Daegu City plans to form and operate a consultative body consisting of research institutes, local companies, academia, and experts to achieve the goals by 2030 of nurturing 100 companies (18 companies in 2020), creating 5,000 jobs (1,500 in 2020), and reaching sales of 4 trillion KRW (850 billion KRW in 2020) through the establishment of the ‘Next-Generation Battery Park’ and fostering the all-solid-state and used battery industries.

Lee Seung-dae, Director of Innovation Growth Bureau of Daegu City, said, “This is an important turning point to shift from supply-centered energy policies to manufacturing-based energy industry development policies, and we will maximize the strengths of the local secondary battery materials, parts, and equipment sectors.”

He added, “Through next-generation battery technology development and convergence with local industries such as agricultural machinery, mobility, and robotics, we will serve as a stepping stone for new growth industries.”