EV Battery & Energy Industry (배터리·에너지): From Petrochemicals to EV Batteries

South Korea is one of the few countries in the world with dominant positions in both the old energy economy and the new one. Its petrochemical industry — centered on the world's largest single-site refinery complex in 울산 (Ulsan) — generates approximately 9% of Korea's total exports. Its EV battery industry — led by LG에너지솔루션, 삼성SDI, and SK온 — collectively holds approximately 30% of the global EV battery market. These two industries are not in conflict; they reflect the same underlying capability: Korea's mastery of complex industrial chemistry at scale.

정유·석유화학 (Petrochemicals & Refining)

세계 5위 정제 능력 (5th Largest Refining Capacity)

South Korea is the 5th largest oil refining country in the world by installed capacity — despite having virtually no domestic oil production. Every barrel of crude oil is imported; every refined product is either consumed domestically or exported.

Korea's four major refiners:

Total Korean refining capacity: approximately 282만 배럴/일 (2.82 million barrels per day).

울산 — 세계 최대 단일 정유·석유화학 콤플렉스 (Ulsan — World's Largest Single-Site Complex)

울산 (Ulsan) — Korea's industrial city on the southeastern coast — is home to the world's largest single-site petrochemical and refinery complex. SK이노베이션's 울산 complex alone processes approximately 840,000 barrels per day. The city also hosts 현대자동차's primary manufacturing plants and 현대중공업's shipyard — making it the most concentrated single city of industrial production in the world.

석유화학 제품 (Petrochemical products) — plastics, synthetic fibers, fertilizers, industrial chemicals — represent approximately 9% of Korea's total exports, making them the 3rd largest export category after semiconductors and automobiles.

Tip — 한국이 정유 강국인 이유 (Why Korea became a refining power): Korea became a refining power not because it has oil — it has none — but because it has the engineering capability, port infrastructure, and geographic position to import crude, refine it efficiently, and export products across Asia. The business model is essentially industrial value-addition: buy cheap raw material, process it with high efficiency, sell the finished product at margin. The same logic applies to steel and shipbuilding.

EV 배터리 (EV Batteries)

K-배터리 3사 (The K-Battery Trio)

Korea's EV battery industry is dominated by three companies — collectively known as K-배터리 (K-Battery):

LG에너지솔루션 (LG Energy Solution, LGES):

• Spun off from LG Chem in 2020

• Global market share: approximately 14% (2023)

• Major customers: GM, Stellantis, Volkswagen, Hyundai, Tesla (historically)

• Listed on Korea Stock Exchange in January 2022 in Korea's largest-ever IPO — raising approximately $10.8 billion

삼성SDI (Samsung SDI):

• Global market share: approximately 5% (2023)

• Strategy: premium prismatic cells; major customers include BMW, Stellantis, Rivian

• Notable for higher-margin positioning compared to Chinese competitors

SK온 (SK On):

• Separated from SK Innovation in 2021

• Global market share: approximately 6% (2023)

• Major customers: Ford (F-150 Lightning), Hyundai-Kia, Volkswagen

• Operating US plants in Georgia in partnership with Ford and Hyundai

합산 점유율 (Combined market share): Three Korean companies collectively hold approximately 25–30% of the global EV battery market — second only to China's CATL (~37%).

글로벌 EV 배터리 시장 (Global EV Battery Market, 2023)

Korea holds the 2nd position nationally, behind China.

배터리 기술의 방향 (Battery Technology Direction)

전고체 배터리 (All-Solid-State Batteries)

The current lithium-ion battery technology has limitations — thermal management challenges, degradation over charge cycles, and fire risk from liquid electrolytes. 전고체 배터리 (all-solid-state batteries, ASSB) replace liquid electrolyte with solid material, offering higher energy density, improved safety, and longer cycle life.

Samsung SDI has announced plans to produce ASSB for BMW by 2027. LG Energy Solution and SK On are pursuing similar timelines. The race to commercialize solid-state batteries at scale is one of the most consequential technology competitions in the automotive industry, and Korean companies are among the leaders.

원통형·각형·파우치 (Cell Formats)

Korean battery makers have different cell format strategies that reflect their customer relationships:

• 원통형 (Cylindrical): LG Energy Solution (used in GM's Ultium platform, historically Tesla)

• 각형 (Prismatic): Samsung SDI (used in BMW, Stellantis, Rivian)

• 파우치 (Pouch): SK On (used in Ford F-150 Lightning, Hyundai)

미국 투자 (US Investment)

The US Inflation Reduction Act (IRA) of 2022 — which provides EV tax credits contingent on battery manufacturing in North America — triggered massive Korean investment in US battery manufacturing:

Total Korean battery investment in the US: approximately $40+ billion — one of the largest foreign direct investment waves in American manufacturing history.

Key Facts

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