SEOUL, South Korea, Nov. 18, 2024 — (KRX:010130), a global leader in non-ferrous metal smelting, today announced its precursor technology—a crucial component in secondary batteries—has received “national core technology” and “national high-tech strategic technology” designations from the South Korean government.
This technology, jointly held by Korea Zinc and its subsidiary KEMCO, has been acknowledged for its substantial technological and economic value in both domestic and international markets, and its considerable growth potential. The government’s decision also highlights the potential national security and economic risks associated with its overseas disclosure.
This designation enables Korea Zinc to establish a secure, self-sufficient domestic precursor supply chain using its own technology. The company will also implement measures to prevent overseas technology leaks as per relevant laws.
The recognized technology is specifically the “technology for manufacturing and processing of cathode active material precursor with a nickel (Ni) content exceeding 80% for lithium-ion batteries.” Following its September application to the Ministry of Trade, Industry, and Energy, and subsequent expert reviews, the designation was recently finalized.
According to the Ministry, the technology falls under the electrical and electronic sector for national core technology and the secondary battery sector for national high-tech strategic technology classifications.
The Industrial Technology Protection Act (ITPA) designates national core technologies as those with high technical and economic value, or significant growth potential, whose foreign disclosure could severely jeopardize national security and economic development. Currently, over 70 technologies across various sectors hold this designation.
The National Advanced Strategic Industry Act (NASIA) designates national high-tech strategic technologies as those with significant national and economic security impacts, and substantial economic effects on exports and employment.
With this designation, Korea Zinc’s technology will face strict regulations. The company will implement protective measures under Article 10 of ITPA and Article 14 of NASIA. Export of this technology, or foreign investment involving mergers, acquisitions, or joint ventures, will require approval from the Minister of Trade, Industry, and Energy, per Article 11 of ITPA and Article 12 of NASIA.
South Korean battery companies have heavily relied on China for cathode active materials (CAM), including precursors. Korea Trade Insurance Corporation data indicates that 97% of precursor imports originated from China in H1 2023, raising significant economic security concerns. Korea Zinc is actively developing a large-scale domestic production system for high-nickel precursors to secure a local supply chain for the secondary battery industry. Construction of an integrated nickel smelter in Ulsan, through subsidiary KEMCO, commenced last November, with trial operations planned for next year.
In 2022, KEMCO and LG Chem established Korea Precursor Corporation (KPC). In March, KPC completed construction of a precursor production plant with process innovation, achieving an annual capacity of 20,000 tons. Prototype production began just two weeks after testing, showcasing a world-first method that significantly increases process capacity, including the use of a world’s largest capacity reactor. This is anticipated to deliver higher-quality precursors more efficiently.
Korea Zinc’s technology is expected to shorten processing times, lower costs, and improve line efficiency, thus boosting productivity and quality. The national core technology designation is predicted to enhance the nation’s global competitiveness and reduce reliance on single-country supply chains, contributing to battery industry economic security.
SOURCE Korea Zinc