ID :
67714
Thu, 06/25/2009 - 20:19
Auther :

(Yonhap Feature) S. Korean hybrid-car battery makers scurry to boost investment

By Nam Kwang-sik
SEOUL, June 25 (Yonhap) -- South Korean makers of batteries for hybrid electric
vehicles (HEVs) are rushing to increase their capital spending in an effort to
secure a spot in the rapidly growing global market.
Aggressive investment by LG Chem Co., Samsung SDI Co., SK Energy Co. and similar
firms is also timed with Hyundai Motor Co.'s launch of South Korea's first HEV in
July. Market watchers are expecting its release to be a catalyst for the
embryonic local industry.
"The launch of the Avante LPI Hybrid will help expand the HEV battery market in
South Korea. But the market is forecast to grow at a modest pace as it will take
a while for the hybrid car to be popular," said James Park, an analyst at Hyundai
Securities Co.
HEVs are powered by both batteries and fuel, and achieve better fuel economy than
conventional vehicles, substantially reducing air pollution.
LG Chem plans to spend 1 trillion won to build an HEV battery plant by 2013 with
the aim of increasing its global market share to over 20 percent. The company
also plans to build a plant in the United States to provide batteries to U.S.
automaker General Motors Corp.
GM's plug-in hybrid electric car, the Chevrolet Volt, will come equipped with LG
Chem's lithium-ion polymer battery beginning in November 2010. The Volt is a
plug-in hybrid electric vehicle (PHEV), which has batteries that can be recharged
when connected to a power outlet.
In June 2008, Samsung SDI, the world's third-largest producer of rechargeable
batteries, signed a deal with Germany's Bosch Corp., the world's largest supplier
of automobile components, to set up a 50-50 joint venture called SB LiMotive. The
company is scheduled to start commercial production of HEV batteries in 2010.
SK Energy, Korea's top refiner, has been increasing its investment in HEV battery
development. "We are planning to start mass production of lithium-ion polymer
batteries starting 2011," said Hong Gyeong-pyo, a spokesman for the firm.
Last January, the refiner broke ground for a 159-billion won (US$124 million)
plant to produce lithium-ion battery separators (LiBS), a key material in HEV
batteries, starting June 2010.
The South Korean government is also actively supporting domestic HEV battery
makers as part of its effort to secure new growth engines.
In November last year, the Ministry of Knowledge Economy signed a deal with
Hyundai Motor and LG Chem, SB LiMotive and SK Energy to produce PHEVs by 2013.
The government plans to spend about 40 billion won on the plan.
Analysts expect that growing corporate spending and government support will
significantly strengthen the South Korean market down the road.
"The HEV battery market in South Korea is still in its infancy, but government
support will help rapidly grow the market," said Jeff Kang, an analyst at Daeshin
Securities Co.
Japan has led the global HEV battery market since the mid 1990s, but South Korea
has been at its heels since 2000, according to data by LG Chem.
The global HEV battery market is expected to grow to 10 trillion won in 2015 from
1 trillion won in 2010, with the number of HEVs rising to 4.6 million units from
950,000 units.
Lithium-ion polymer batteries are expected this year to replace nickel hydrogen
batteries, which until now have held 95 percent of the global HEV battery market
share.
In late 1997, Toyota Motor Corp., Japan's largest carmaker, developed the Prius
-- the world's first HEV -- using a nickel hydrogen rechargeable battery made by
Panasonic Corp.
Hyundai's Avante LPI HEV will be the first such vehicle to use an advanced
lithium-ion polymer rechargeable battery, which has a larger output and is much
safer than existing nickel hydrogen models.
Kia Motors Corp., an affiliate of Hyundai Motor, plans to begin production of an
HEV version of its Forte in September.
ksnam@yna.co.kr
(END)

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