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EU Acceleration Act seen as boost for S Korean batteries
Um Ki-cheon, president of Posco Future M and head of the Korea Battery Industry Association, said the EU’s Industrial Acceleration Act offers an opportunity for Korea’s battery industry.
The European Commission’s Industrial Acceleration Act includes measures to strengthen Europe-origin requirements to boost local manufacturing and make it harder for Chinese-made electric vehicles to enter the bloc.
Um said Korean batteries compete on technology, quality, and reliability.
He also called for government support to keep battery production in Korea.
Several Korean firms plan to start mass production of LFP cathodes this year. Companies are also developing solid-state battery materials.
🔗 Source: Chosun Daily
🧠 Food for thought
Implications, context, and why it matters.
The EU’s new rules move past a loose ‘Made in Europe’ slogan
- The European Commission’s Industrial Acceleration Act (IAA) adds ‘Made in EU’ and low-carbon conditions to public procurement (government purchasing) and public support schemes in selected strategic sectors 1.
- Hana Securities says the draft IAA ties electric-vehicle (EV) battery support to a component count. At first, at least three key parts, including battery cells, must be EU-made. After three years, the bar rises to at least five parts, including cells, anode materials and battery management systems (BMS) 2.
- Some reports say finished electric vehicles that get government support may need up to 70% of components sourced from within the European trading bloc 3.
- These rules help explain why Korean battery makers with established plants in Europe may have an edge over imports from outside the bloc 2. The policy targets manufacturing rising from 14.3% of EU GDP to 20% by 2035 1.
The battery industry faces pressure from Europe and China
- The IAA could steer battery materials suppliers such as POSCO Future M toward more European output so products qualify for procurement and support schemes 1.
- At the same time, POSCO Future M has teamed up with China’s CNGR and its Korean subsidiary FINO in a joint venture for lithium iron phosphate (LFP) cathode materials. The focus sits on lower-cost chemistries for energy storage systems (ESS) and entry-level EVs 4.
- This mix can serve EU-backed demand while keeping a cost-focused supply line through global partnerships.
- For a longer horizon, POSCO Future M is working on materials for all-solid-state batteries, with mass production targeted by 2030 5.
