South Korea’s trade, industry and energy ministry (Motie) has unveiled plans to boost the country’s relevance in the global EV battery market, Kallanish reports.

The so-called K-battery development strategy is based on private investments of 40 trillion won ($34.9 billion) by 2030, supported by the government. The initiative includes “significantly expanded” tax benefits thanks to the designation of national strategy technology. Tax credits will be lifted from 12% to 20% for facility investments and from 40% to 50% for R&D investment.

The 10-year investment will be delivered by SK Innovation, Samsung SDI and LG Energy Solution. The latter, and its parent company LG Chem, will jointly allocate 15.1 trillion won as part of the initiative (see related story).

Motie expects the financial boost and production capacity expansion will lead to South Korea holding a 40% share in the global battery market by 2030. China is currently the largest producer and CATL is the world’s largest manufacturer.

The strategy also focuses on the development of a steady supply of key materials, parts and equipment for battery manufacturing. The country is estimated to import 47% of its cathode needs, 80% of anodes, nearly 70% of separators and 66% of electrolytes.

Additionally, great emphasis will be put into research and development of next-generation battery technologies, and the second-life use of batteries.