[Reporter’s Notebook] ESS Bidding Must Become a Lifeline for K-Battery Industry

Amid sluggish demand for electric vehicles, domestic battery manufacturers are struggling, and the government recently closed the bidding for the second Central Contract Market for Energy Storage Systems (ESS). This bidding process is not simply about purchasing volume; it serves as a lifeline for the domestic battery industry, which has fallen into a chasm of temporary demand stagnation, and is also a step in designing the ESS market. The government's selection criteria for this bidding process are at a critical crossroads, as they could determine the future direction of the domestic ESS industry.

Despite this being the second round of bidding, the evaluation criteria remain unclear to industry insiders. The only evaluation item that allows for differentiation between domestic and Chinese products is 'industrial and economic contribution.' However, this is vaguely defined as a comprehensive assessment of the contribution to the activation of the storage industry, based on the ability to supply core ESS components, equipment, and technology, as well as maintenance capabilities, and their effects on the domestic industry, economic stability, supply chain security, and job creation. As a result, there are criticisms that the standards are ambiguous.

Fortunately, some evaluation criteria have changed in this second round. The weight of price has been reduced from 60% in the first round to 50% in the second, while the importance of non-price factors, such as domestic production, has increased somewhat. However, ESS is not just about purchasing and installing equipment. It must be operated stably over a long period, and any issues must be addressed quickly. Furthermore, the ESS industry is interconnected from cells to materials, systems, and maintenance. Only when the manufacturer and production base are more transparent can responsibility for potential future problems be clearly assigned.

The standards for public procurement do not end with this contract. They will set the criteria for the next round of bidding and influence investment decisions in the industry. Therefore, public bidding in the Central Contract Market is not just a purchasing process, but a process of establishing order and providing direction for how to build the domestic industrial ecosystem.

If the Central Contract Market aims to revitalize the industry, it must establish clearer differentiation for domestic production and the procurement of domestic materials. The evaluation should clearly and specifically reflect how much of not only battery cells but also key materials, equipment, and systems are sourced domestically.

The Central Contract Market is not simply a procurement venue. It is a choice that demonstrates how the market will be designed. Ultimately, that choice will shape the structure and competitiveness of the domestic industry. When the differentiation for domestic production and domestic material procurement becomes clearer, the Central Contract Market can serve as a 'priming pump' that goes beyond short-term procurement and helps grow the industry.