S. KOREA-U.S. “BATTERY ALLIANCE”

[Anchor Lead]

One day prior to the ROK-U.S. summit, SK Innovation and Ford Motor announced that a joint corporation would be established in the United States to manufacture batteries for electric vehicles, quickly shaping up a so-called “battery alliance” between the two countries. Also, Samsung Electronics attended the second round of semiconductor talks convened by the U.S. Department of Commerce.

[Pkg]

SK Innovation and Ford Motor, America’s second largest automaker, are to establish a joint corporation to manufacture EV batteries. Their plan is to start investing six trillion won, about 5.3 billion U.S. dollars in 2024 to manufacture EV battery cells. SK has invested three trillion won or 2.6 billion U.S. dollars in the two battery plants under construction in Georgia. The Korean conglomerate plans to build two other plants nearby. Following the partnership between LG Energy and General Motors earlier, the so-called “battery alliance” between South Korea and the United States is shaping up nicely. Industry insiders believe the two countries’ common goal of curbing the Chinese influence came into play. Together with semiconductors, rare-earth elements, and medical supplies, EV batteries are one of four items in President Biden’s improved global supply network plan.

[Soundbite] Joe Biden(U.S. President(May 18))

There's growing interest in the outcome of a second round of talks addressing the shortage of semiconductors following the first one held in April. Samsung Electronics attended the second-round meeting convened by the U.S. Department of Commerce. It's believed the participants discussed in detail the construction of a 20-trillion-won or 17-billion-dollar foundry on the drawing board. Foreign press reported that Samsung plans to build a semiconductor plant in Texas and is discussing tax incentives with authorities. A statement about the construction of a new plant is expected to be announced during President Moon Jae-in’s visit.

[Soundbite] Jen Psaki(White House Press Secretary)

In time for the South Korean leader's visit to Washington, Korean companies have been announcing their plans to invest in the States. Many point out these plans must go beyond being mere friendly gestures for the summit, that they must help create greater opportunities for Korean companies to solidify their positions in America and ensure maximum profit.