Last year domestic battery companies spent more than 2 trillion won on research and development (R&D) focusing hefty investment on technology development. To secure current market from the second movers in battery business such as China and Europe ‘Technological advancement’ through constant R&D is the only way of preparation.

According to the business industry on the 1st domestic three battery companies invested 2.2 trillion won (Including government subsidies) on R&D. It is 6.26% increased figure from the last year (2.07 trillion won). It includes R&D costs for other fields such as petrochemistry and new drug but the business industry assumed most of it was spent on battery.

The company who had spent the most money on R&D is LG Chem the holding company of LG Energy Solution Ltd. spent 1.13 trillion won (3.8% of sales). Samsung SDI spent 800 billion won as the second most but compared to its sales it was 7.16% the highest record among the three companies. SK Innovation spent 253.9 billion won (0.74%).

LG Energy Solution Ltd. has the largest number of patents related to battery based on standards of last year total 19774 cases including 6887 domestic cases and 12887 international cases. Lately LG Energy Solution Ltd. tried to hire career staff who has related experience to manage their patents efficiently.

Samsung SDI also has total 17636 cases of patents including 5070 domestic cases and 12566 international cases. SK Innovation possesses total 2505 cases of patents in the fields of battery new materials and petroleum. The number of patents that these three companies possess is about 40000 cases.

Global electric motor vehicle battery market growing drastically every year is expected to grow to 180 trillion won in 2025 and exceed the market scale of memory semiconductor (150 trillion won). Not to be caught up with the second movers in global battery business emerging at a rapid pace this kind of ‘Patent barrier’ is necessary.

Actually LG Chem filed a lawsuit against Chinese battery company ATL for patent infringement of membrane technologies on last year 2017 and concluded a paid licensing agreement in 2019. In the situation of global competitors fiercely competing to secure early market possession of intellectual property rights will be very important.

One of the industry officials said “The technology pursuit from the first movers in battery industry will be enhanced from Chinese CATL producing cheap products to Volkswagen which announced the battery internalization plans lately” and “To secure the initiative in global market current technology gap has to be secured and widened.”