On Aug. 23, Ban Jeong-sik (right), Regional Innovation Director at the Korea SMEs and Startups Agency, and Kim Je-young, CTO of LG Energy Solution, pose for a photo after signing a business agreement. Photo courtesy of the Korea SMEs and Startups Agency
The Korea SMEs and Startups Agency (KOSME) is partnering with global battery maker LG Energy Solution (373220.KS) to build a public-private cooperation model for shared growth aimed at strengthening the foundation of Korea’s battery industry.
KOSME said Tuesday that it will pursue a two-track win-win program with LG Energy Solution to respond to the restructuring of the global battery supply chain and carbon emission regulations. The two sides signed a “Memorandum of Understanding to Strengthen the K-Battery Ecosystem” Monday at LG Energy Solution’s Daejeon Institute of Technology in Yuseong-gu, Daejeon.
The agreement is one of the follow-up measures to the “K-Battery Open Innovation” program, which began in May and focused on non-partner companies. A key feature is that the scope of support has been expanded beyond non-partner companies to existing partner companies. It is a two-track structure that strengthens the internal supply chain (partner companies) while also embracing innovative technologies from outside (non-partner companies).
KOSME plans to support stable funding based on policy funds, shared growth network loans, and joint business transition support. It will also provide a carbon-neutral support program (MRV) to respond to the EU Carbon Border Adjustment Mechanism (CBAM).
“Through this agreement, we will further expand cooperation with promising domestic companies and accelerate their growth, contributing to strengthening the competitiveness of the K-battery industry,” said Kim Je-young, Chief Technology Officer (CTO) of LG Energy Solution.
“KOSME’s corporate development infrastructure and policy support capabilities will create powerful synergy when combined with LG Energy Solution’s global value chain,” said Ban Jeong-sik, Regional Innovation Director at KOSME.