Potential Growth Avenues in the South Korean Electric Vehicle Landscape
Technology strategy of South Korea will transform it into a leader with global influence
Automotive industry is rapidly evolving in terms of technology as well as tackling environmental issues. Electric vehicles (EVs) have been introduced as a clean energy initiative due to low or zero emissions and have come a long way to become an integral part of OEMs’ business strategies. Automakers are creating separate EV business units to be prepared for the expected EV boom in the future. But, the surge in EV demand will create a huge need for charging infrastructure, safety regulations, and new standards.
South Korea is a curious market considering the technology leadership in battery production and strong EV sales (exports) in Europe, despite the home market lagging considerably behind Europe, China and US. Hybrids have done well in South Korea suggesting an enthusiasm for alternative fuel vehicles and environmental considerations. According to the public, primary factors for slow EV adoption are low EV range and lack of charging infrastructure.
2020 is an important year as PEVs had their highest annual sales ever while EV (PEVs and HEVs) market penetration surpassed 10% for the first time. The government made huge strides in expanding the charging infrastructure along with a renewed focus on increasing EV penetration while adopting stricter emission policies similar to Europe. Hyundai-Kia will be launching its first EVs based on the brand’s new pure electric E-GMP platform with state-of-the-art specs. Battery manufacturers, such as LG Chem, Samsung SDI, and SK Innovations have entered into an arms race to consolidate long-term supply contracts, raw material supply, R&D for improved batteries, chemistries, recycling, and other key partnerships as they brace themselves for the inevitable battery boom.
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