[Battery, Asking About the Crisis] "No Talent, Need to Hire Retirees... Missing the Golden Time"

③ As of the end of 2021, a shortage of 4,000 people
More severe in small and medium-sized enterprises
Need to transfer experience from retired executives of large companies
"Government-led workforce training and R&D support projects are urgent"

Editor's NoteCan Korea's battery industry truly become the next advanced industrial growth engine? Looking at the stock market, which thrives on future value, the recent atmosphere around the battery industry has shifted. Ecopro, which rose to become a 'king stock,' is now threatened at the 1 million KRW mark. As the stock prices of major battery companies have taken a downturn, a 'crisis theory' has emerged. The global recession and weaker electric vehicle sales have had a significant impact. We revisited the crisis facing our battery industry, standing at the crossroads of growth and stagnation, from three perspectives: supply chain, price competition, and labor shortage.

Over the past year, Korea's top three battery companies?LG Energy Solution, Samsung SDI, and SK On?have collectively hired about 3,500 new employees. According to the Korea Battery Industry Association, the shortage of battery industry personnel was about 4,000 as of the end of 2021. However, the industry still faces a severe labor shortage.

The labor supply issue is at a critical level. Companies want practical talents who have majored in battery-related fields or have sufficient knowledge about batteries to be immediately deployed on-site. However, universities have only recently started offering battery-related courses mainly at the master's and doctoral levels. Naturally, the supply of skilled personnel is not smooth.

Both battery cell manufacturers and battery material companies are experiencing labor shortages. The problem worsens for small and medium-sized enterprises (SMEs). Large companies like the top three battery firms, LG Chem, and POSCO Future M can accept even a small number of battery majors, but SMEs find it difficult to recruit such specialists. Students tend to prefer large corporations. In other words, SMEs have to work with personnel who lack battery expertise.

There is a shortage of both on-site workers hired from high school graduates and research and development (R&D) personnel at the master's and doctoral levels. Choi Jang-wook, director of the Hyundai Motor Group-Seoul National University Battery Joint Research Center, said, “The battery industry's expansion speed is so rapid that labor supply cannot keep up with demand,” adding, “This is a problem that is difficult to solve in the short term.”

Unlike other industries, the battery market grows first, and academia follows. This means that industrial field technology advances faster than academic research. Recently, universities have recognized the importance of electric vehicle batteries and increased related courses and freshmen enrollment, but the absolute number of students remains small.

Lee Sang-young, director of the LG Energy Solution-Yonsei University Secondary Battery Research Center, said, “Securing talent is a top priority for battery companies,” adding, “Research and production require people, but there are not enough graduates.” He also noted, “Production workers can operate factories after battery training, but there are no substitute personnel for R&D,” emphasizing that “the labor supply mismatch is at a very serious level.”

There is even talk that companies have resorted to creating contract departments, saying, “We will provide funding if you train students.” The top three battery companies have established contract departments at universities under the condition of hiring graduates, providing tuition and living expenses to students. LG Energy Solution has contract departments at Yonsei University and Korea University; Samsung SDI at Seoul National University, POSTECH, and Hanyang University; and SK On at Sungkyunkwan University and Ulsan National Institute of Science and Technology (UNIST).

Meeting the demand for on-site workers is also challenging. Professor Park Cheol-wan of Seojeong University said, “To train domestic on-site workers, domestic factory production capacity must also be increased, but that is not feasible,” explaining, “Due to domestic industry protection laws such as the U.S. Inflation Reduction Act (IRA), Korean companies are expanding factories in the U.S. and Europe.”

Most key processes in battery manufacturing are automated, but some processes remain manual. For example, the electrode plate process requires human labor. Professor Park said, “Although basic tasks can be taught, skilled workers are needed to stabilize yield (the ratio of finished products to total production),” adding, “Continuous training and experience are necessary, but the younger generation's reluctance to work in manufacturing sites seems to affect the battery labor shortage.”

There is also an opinion that retired senior personnel from major battery companies should be utilized to train workers who can be immediately deployed on production lines. A battery industry insider said, “If retired executives from large companies pass on their expertise and experience to students seeking employment in the battery industry or to employees of SMEs, it could provide practical and field-oriented education.”

President Yoon Suk-yeol is declaring the opening at the Cabinet meeting held on the 29th at the Yongsan Presidential Office building in Seoul. President Yoon presided over the Cabinet meeting that day and reviewed and approved the draft budget for the next year.
[Image source=Yonhap News]

Last month, on the 29th, the government allocated a budget of 1.874 trillion KRW for next year, an increase of 277.8 billion KRW from this year, at the Cabinet meeting to nurture talent in advanced fields such as semiconductors and batteries. The plan includes nurturing battery talent at three specialized universities nationwide and training 600 battery professionals at company-operated academies. However, the field hopes for more groundbreaking government-led talent development programs and battery R&D support projects.

The center director said, “So far, students do not seem to want to work for Chinese companies,” adding, “It is fortunate that our companies are leading, but if the labor supply problem is not resolved, students may eventually have no choice but to go to foreign companies. Now is the golden time for Korea's battery industry.”