SEOUL,
South Korea, Nov. 18,
2024 /PRNewswire/ -- Korea
Zinc (KRX:010130), the world's leading non-ferrous metal
smelting company, announced today that its precursor technology, a
key material for secondary batteries, has been designated as
"national core technology" and "national high-tech strategic
technology" by the Korean government.
The precursor technology, jointly owned by Korea Zinc and its
subsidiary KEMCO, has been recognized for its significant technical
and economic value in both domestic and international markets, as
well as its potential for industrial growth. The government's
decision also acknowledges that should the technology be leaked
abroad, it could have a serious negative impact on national
security and the country's economic development.
With this ruling, Korea Zinc will now be able to build a foundation
to establish a stable self-sufficient supply chain for precursors,
a key material for secondary batteries, using entirely homegrown
technology. The company will also begin implementing protective
measures against overseas technology leaks in accordance with
relevant laws.
The Korea Zinc technology that has been recognized as both national
core technology and national high-tech strategic technology is
the "technology for manufacturing and processing of cathode active
material precursor with a nickel (Ni) content exceeding 80% for
lithium-ion batteries." Korea Zinc submitted its application for
this designation to the Ministry of Trade, Industry, and Energy in
September, and after two rounds of expert evaluations, the
designation was recently finalized.
According to the Ministry of Trade, Industry, and Energy, the
technology is classified under the electrical and electronic sector
in the national core technology category and the national
high-tech strategic technology's secondary battery sector.
Through the Industrial Technology Protection Act (ITPA ) (Act on
Prevention of Divulgence and Protection of Industrial Technology),
the government gives national core technology designation to
technologies with high technical and economic value in domestic and
international markets, or those with significant growth potential
in related industries that if leaked abroad, could seriously
threaten national security and economic development. More than 70
technologies across sectors like semiconductors, displays,
electronics, shipbuilding and nuclear energy are currently
designated and managed as national core technology.
Under the National Advanced Strategic Industry Act (NASIA) (Special
Measures Act on Strengthening and Protecting the Competitiveness of
National High-tech Strategic Industry), technologies with
significant national and economic security impact, as well as
substantial economic effects in terms of exports and employment,
are designated as national high-tech strategic technologies.
With this designation, Korea Zinc's technology will be subjected to
strict regulations. The company plans to implement protective
measures under Article 10 of ITPA and Article 14 of NASIA.
Furthermore, any export of this technology, or any foreign
investment involving mergers, acquisitions or joint ventures, will
require approval from the Minister of Trade, Industry, and Energy,
as per Article 11 of ITPA and Article12 of NASIA.
Domestic battery companies have been relying almost exclusively on
China for cathode active materials
(CAM), including precursors. According to the Korea Trade Insurance
Corporation, as of H1 2023, 97% of domestic precursor imports came
from China, raising significant
concerns for economic security. In response, Korea Zinc has been
accelerating efforts to establish a mass domestic production system
for high-nickel precursors to secure a local supply chain for the
secondary battery industry, a national high-tech strategic
industry. To achieve this, the company began construction of an
all-in-one nickel smelter in Ulsan, Korea through its subsidiary
KEMCO last November, with trial operations scheduled for next
year.
In 2022, KEMCO and LG Chem formed a joint venture called Korea
Precursor Corporation (KPC). In March, for the first time in the
world, KPC completed construction of a precursor production plant
with process innovation applied, yielding an annual capacity of
20,000 tons. The plant successfully produced prototypes just two
weeks after the test run began. Notably, it was the first in the
world to apply a method that dramatically increases the process
capacity of the precursor production process, including the use of
the world's largest capacity reactor during test run and prototype
production. This innovation is expected to allow KPC to produce
higher-quality precursors more efficiently than its competitors,
including Chinese companies.
Korea Zinc anticipates that its proprietary technology will shorten
overall processing times, reduce processing costs and improve line
efficiency, thereby enhancing productivity and quality in precursor
manufacturing. The designation of this technology as national core
technology is expected to bolster the nation's global
competitiveness. Moreover, by diversifying the supply chain of
critical minerals for domestic battery materials, Korea Zinc aims
to reduce dependence on any single country and contribute to the
economic security of the battery industry.
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SOURCE Korea Zinc