Major Korean companies such as LG, Samsung, and SK are accelerating their investments in electric vehicle battery and future parts (electronic device) parts business.

According to industry sources on March 12, LG Chem is preparing to build a battery plant at its Michigan plant in response to GM`s move to expand production of electric vehicles.

Park Jin-soo, vice chairman of LG Chem stated, "The US is working well until the fourth production line and we are preparing for the expansion next year. GM electric car is selling well these days. " Meribara CEO Chrysler said earlier this year that it plans to increase its production of Chevrolet Bolt in the Orion assembly line near Detroit. Although it has not disclosed how much it will increase, GM still maintains a solid partnership with LG in relation to its electric vehicle business. Vice-Chairman Park emphasized that GM`s dealings with GM were not affected by the controversy over the withdrawal of GM Korea. Considering that Volt supplies 11 core parts, including batteries, from LG Electronics, it is expected to have a positive impact on profitability of the LG Electronics VC division. LG Electronics plans to complete a Michigan auto parts factory in the first quarter.

Samsung and its subsidiaries, Harman and Samsung SDI, are aggressively pursuing auto parts business. Haman announced the car audio and next generation infotainment system applied to Kia Motors, Audi, Bentley, Lamborghini, Ford, Alfa Romeo, BMW, Maserati and Mercedes-Benz at the Geneva Motor Show on the 6th. In addition, BMW will start offering services to its buyers to open doors to Samsung`s smartphone in July.

Besides, SK Innovation plans to construct a battery plant for Hungary`s electric car in recent years. In 2022, it will be able to supply 125,000 vehicles per year of 500km class electric car. SK Networks signed a memorandum of understanding (MOU) with Parking Cloud, which provides real-time parking space and mobile payment service. SK Telecom has signed a memorandum of understanding (MOU) with Mobile Pool Congress I have informed the world of the technology of driving car.

Major group companies are investing aggressively in the automotive battlefield business. LG Chem plans to increase its investment in facilities by 22.2% to KRW 1.10 trillion, to increase its research and development (R & D) by 52% over the previous year.

Meanwhile, Samsung Electronics is seeking opportunities for mergers and acquisitions (M & A) related to the automotive battlefield business by opening a Samsung Innovation Summit in Israel on March 11 (local time). Samsung SDI is expected to invest more than KRW 200 billion this year to expand its cylindrical battery production plant, which is used not only for small size but also for electric vehicles. SK Innovation will invest KRW 840.2 billion in the construction of a battery plant for Hungary`s electric car, investing 200 billion won in the battery cell membrane (LiBS) facility for electric vehicles and the battery plant in Seosan.

Meanwhile, the industry expects that the electric car market is growing rapidly and that major corporations are strong in business, which will increase the influence of Korean companies in the market. According to the Korea International Trade Association (KITA), exports of electric cars and energy new industries (electric cars, etc.) grew 560.0% and 152.8%, respectively,

An industry expert said, "Korea is the best place to commercialize electric cars considering narrow land, high-speed communication network such as 5G, and electric power infrastructure." However, recently, China`s protection trade, including elimination of battery subsidies from Korea, (13,724 units last year), which is only one-fifth of the world`s poorest electric car, and autonomous navigation software, which is in short supply compared to hardware.


By Park Jung Il comja77@


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