[How About This Book] After Semiconductors, Batteries Are Taking Off

30,000 Electric Taxis in the US in the 1900s
Disappeared with the Advent of Internal Combustion Engine Cars
Reemergence After Over 100 Years Driven by Advanced Battery Technology
Korea's Leading Edge Achieved with Specialized Korean-Style Pouch Batteries
High Space Efficiency and Low Fire Risk
Embodiment of 30 Years of Expertise by Domestic Companies

There is a man known as the so-called ‘Battery Uncle.’ The protagonist is Park Soon-hyuk, who is self-proclaimed and widely recognized as the ambassador of South Korea’s battery industry. Wherever there is a place to properly promote K-Battery, he appears, creating a huge buzz. The YouTube broadcasts he has appeared on have accumulated 10 million views, and his book, K Battery Revolution (Jiwain), has remained at the top of the bestseller list for two weeks since its publication.

The author’s journey to becoming a K-Battery evangelist began at his first job, Korea Investment Trust Management (now Hana Securities). He started his career as an analyst at a firm that, along with Korea Investment Trust, once dominated the domestic securities market. He covered companies such as Saerom Technology, the real-life model of ‘New Data Technology,’ which achieved 150-fold growth within a year as depicted in the drama Reborn Rich, and spent nearly 30 years working in Yeouido. Then, in 2022, at the request of Ryu Kwang-ji, chairman of the secondary battery company Kumyang, he took charge of Kumyang’s investor relations (IR) and promotional activities, embarking on the path of a full-fledged battery evangelist.

In his book, the author covers the beginning and present state of the global battery industry. Recently, electric vehicles (EVs) have come to the forefront of the battery industry and attracted attention, but according to the author, the emergence of EVs is not a recent phenomenon but predates internal combustion engines. Scottish inventor Robert Anderson invented the ‘crude electric carriage’ in 1834, and in 1881, Gustave Trouv? introduced a three-wheeled electric vehicle. In 1897, electric taxis appeared, and by the 1900s, the number of taxis across the United States reached 30,000. However, with the introduction of the internal combustion engine car by Henry Ford, known as the ‘King of Cars,’ in 1908, electric vehicles rapidly disappeared. This was because they could only travel 80 km on a full charge, were heavy, and more expensive than internal combustion engine cars.

Electric vehicles, which had disappeared from the stage, reappeared after about 100 years, and behind this revival lies remarkably advanced battery technology. According to the author, Korea’s battery technology is the best in the world. Although there are claims that China will dominate the global battery market, the author firmly calls this a ‘misunderstanding.’ If the heart of an electric vehicle is the battery, then the heart of the battery is the cathode material. The author compares domestic cathode material technology to the celadon color technology of Goryeo celadon, emphasizing it as a super-gap technology that is difficult to imitate. Cathode material is a key substance that determines the battery’s charging capacity and voltage.

The domestic battery industry began around 1992. After LG Chairman Koo Bon-moo first encountered secondary batteries at the UK Atomic Energy Research Establishment, he directed domestic research, which has continued for 30 years. Despite recording cumulative losses amounting to trillions of won and the saying, ‘LG Chem makes money and pours it all into secondary batteries,’ the industry ultimately achieved world-class levels. LG Energy Solution entered the stock market last year as the second-largest company by market capitalization. Additionally, EcoPro, which entered the automotive cathode material business in 2004 under the national policy directive of the late President Roh Moo-hyun, devoted itself to research by acquiring Samsung Cheil Industries’ abandoned research results for 10 billion won, achieving the super-gap core technology of ‘high-nickel cathode material technology.’

K-Battery technology also dominates the world in safety. Electric vehicles are often criticized for safety issues such as fires, but the Korean-style pouch battery is a differentiated strength of K-Battery. The pouch battery is a new product that compensates for the inefficiencies of the conventional cylindrical battery. Cylindrical batteries pose an explosion risk if heat generated inside is not released, making it difficult to increase their size, so they must be used in bundles of limited size. However, this results in significant space waste between cylinders and considerable weight. The solution was the rectangular pouch battery. It wraps the rectangular battery in a thin, lightweight vinyl material to reduce weight and improve space efficiency while applying advanced technology to prevent fire risks. According to the author, only LG Energy Solution and SK On possess pouch-type battery technology worldwide.

However, securing mineral resources used as battery raw materials remains a challenge. According to the report Diagnosis and Policy Recommendations on the Secondary Battery Supply Chain of Korea and China published last year by the Korea Mineral Resources Strategy Research Center, Korea scored 1.3 out of 5 points, rated as ‘very insufficient.’ China was rated 3.3, considered average. Since most secondary battery raw minerals are imported, and Korea’s battery industry heavily depends on China, the author points out the risk of exposure to the ‘weaponization of Chinese resources.’ The author emphasizes that although POSCO Group purchased the development rights to the Ombre Muerto salt lake in Argentina for 300 billion won, with lithium production expected to begin in 2025, and Kumyang is attempting to secure lithium mines by entering the Democratic Republic of Congo’s lithium mine development, full-scale national support is necessary. He insists this is a ‘task that must be resolved.’

The author stresses that the key to the electric vehicle era is the battery. He explains that electric vehicles have a simple structure composed of a motor and battery, unlike internal combustion engines, making the entry barrier very low. Since engine technology, which requires advanced skills, is unnecessary, established automobile giants must compete from scratch. However, battery technology is a concentrated result of 30 years of accumulated expertise by domestic companies. With the core of automotive technology shifting from engine technology to battery technology, the author emphasizes that batteries are the new growth engine following semiconductors.

K Battery Revolution | Written by Park Soon-hyuk | Jiwain | 223 pages | 19,000 KRW