A South Korean city home to one of the
world’s biggest steelmakers is betting its manufacturing expertise, billions of
dollars in investments and government incentives can help it dominate a
21st century industry: electric vehicle batteries.
Companies in the southeastern hub of Pohang — famous for Posco Holdings Inc. steel mills and one of the
country’s elite universities — are aggressively building out EV battery campuses
as automakers hurry to find reliable suppliers outside China. Three South
Korean giants in the global battery market — LG Energy Solution Ltd., Samsung
SDI Co. and SK On Co. — have promised 40 trillion won ($31 billion) in domestic
investments with their local suppliers.
It’s a welcome development for both the city and the country,
where the world’s lowest birth rates and an aging population
are a long-term threat to economic growth.