Ban Jeong-sik (right), Director of Regional Innovation at the Korea SMEs and Startups Agency, and Kim Je-yeong, CTO of LG Energy Solution, pose for a photo after signing a business agreement on the 23rd. Photo courtesy of the Korea SMEs and Startups Agency
The Korea SMEs and Startups Agency (KOSME) is joining hands with global battery maker LG Energy Solution (373220.KS) to build a public-private shared growth model 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 global supply chain realignment in the battery sector and carbon emission regulations. The two parties signed a “Memorandum of Understanding to Strengthen the K-Battery Ecosystem” on Monday at LG Energy Solution’s Daejeon Technology Center, located in Yuseong-gu, Daejeon.
The agreement is one of the follow-up measures to the “K-Battery Open Innovation” program, centered on non-partner companies, that began last month. A key feature is that it expands the scope of support to include existing partner companies as well as non-partner companies. It is a two-track structure that strengthens the internal supply chain (partner companies) while embracing innovative technologies from outside (non-partner companies).
KOSME plans to support stable financing based on policy funds, a shared growth network loan, and joint business conversion support. It will also provide a carbon neutrality support program (MRV) to respond to the EU’s Carbon Border Adjustment Mechanism (CBAM).
“With this agreement as a turning point, we will further expand cooperation with promising domestic companies and accelerate their growth to contribute 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, combined with LG Energy Solution’s global value chain, will create powerful synergy,” said Ban Jeong-sik, Regional Innovation Director at KOSME.