How South Korea is partnering with Aussie miners to power its blossoming battery sector

Global battery deployment reached all time highs in 2024 with demand surpassing 1 terawatt hours
Countries like South Korea are expanding, with planning and construction of 400 gigawatt hours of battery manufacturing capacity underway in the East Asian nation
Green Technology Metals among the ASX miners benefitting with battery firm EcoPro’s backing

A significant shift is underway in the battery industry, fuelled by plunging lithium prices and record-setting global deployment.

According to the latest analysis from the International Energy Agency, battery deployment reached all-time highs last year as demand surpassed 1 terawatt hours (TWh) for the first time.

Record figures were also reported across other segments of the supply chain, with global battery manufacturing topping 3TWh, a figure IEA analysts suggest could triple in the next five years if all announced projects are built.

While China remains the top producer, production capacity is expanding fast in jurisdictions like Japan, the US, Europe and South Korea.

According to the report, South Korean companies have the most ambitious expansion plans with almost 400 gigawatt hours of battery manufacturing capacity expansion planned or underway, beating Japan’s 60GWh and China’s 30GWh.

Even as Europe and the US continue to expand their respective battery capacities, experts believe South Korean battery producers will remain indispensable with early government support giving the country a head start.

Interestingly, South Korea-headquartered manufacturers are forecast to account for 49% of battery capacity in the US by 2030 as markets change from being regionalised and small to global and large with factors like economies of scale and partnerships emerging as crucial to compete.

EcoPro gunning for bigger market share

A South Korean company making headway in the industry is EcoPro, the world’s top nickel-rich cathodes manufacturer and the nation’s leading EV cell materials producer.

The company is gunning for a bigger market share, revealing to conference goers at South Korea’s largest battery exhibition this month its plans to launch an integrated cathode material company in Indonesia and develop new materials for all-solid-state-batteries.

Within the year, EcoPro said the integrated company would form a value chain from smelting to precursors and cathode materials in partnership with China’s GEM, which has already secured the mineral resources.

EcoPro’s ambitions mirror that of Posco, a South Korean steel giant striving to strengthen its EV battery materials supply chain ranging from lithium mining and salt lake extraction to cathode materials and recycling.

Last year, Posco signed an MoU with Gina Rinehart’s Hancock Prospecting to build a lithium chemical facility targeting 30,000t of production, with the two parties committing to work together on looking for candidate sites.

It also has several other deals with Aussie companies such as Syrah Resources (ASX:SYR), Pilbara Minerals (ASX:PLS) and Black Rock Mining (ASX:BKT).

Partnership with Green Technology Metals

EcoPro has also been increasingly taking stakes in Australian mining companies especially with those tied to the energy transition.

A case in point is Green Technology Metals (ASX:GT1), whose ambitions of becoming Ontario’s first lithium concentrates and chemicals company in Canada saw it enter a deal with EcoPro last year.

Along with its extensive experience in lithium hydroxide production, EcoPro has built patented technology for lithium extraction, which is crucial for the success of the proposed lithium conversion facility GT1 is looking to develop near the site of its future Syemour and Root hard rock lithium mines.

EcoPro invested $8 million in GT1 and was granted exclusive rights to negotiate and agree staged asset-level investments at both Seymour and Root.

The pair will also potentially co-fund a pre-feasibility study into a proposed lithium conversion facility in Ontario, including two processing hubs.

GT1 managing director Cameron Henry told Stockhead the addition of a major Korean company to the project would significantly enhance its capabilities to deliver an integrated mine to the chemical business.

“A key factor in our ability to attract this kind of partner is the strategic location of our projects,” he said.

“The Ontario region is second to none for a complete battery ecosystem and has seen significant investment, including over $44 billion in recent years.

“Producing spodumene concentrate and shipping it out of Ontario won’t be viable in the long term, so the strong government support and influx of battery manufacturers present a unique opportunity to establish an integrated lithium business, and we are excited to successfully build this in Ontario with our new strategic partner.”

At Stockhead, we tell it like it is. While Green Technology Metals is a Stockhead advertiser, it did not sponsor this article.