Korea pushing electric autos

Koreans expanding market

02 February 2009 00:00  [Source: ICB]

IT IS no wonder that the Republic of Korea is at the forefront of electric car development. According to the Korean Ministry of Knowledge Economy (MKE), the nation is one of the countries in the Organisation for Economic Co-operation and Development that imposes the highest amount in oil taxes. Around 70% of the price of diesel goes to taxes, says Korea National Oil.

Formed in early 2008, the MKE consists of the combined former ministries of commerce and energy. But those two agencies have been, since 2003, supporting lithium-ion (Li-ion) and Li-ion polymer battery research in Korea, with roughly Korean won (W) 39.3bn ($37.7m) in investments.

But on January 22, the Korean government said it plans to invest W6 trillion over the next four years to develop a green-energy development policy.

At a press conference for the announcement, vice energy minister Ahn Chul-shik said the project would "be led by the country's major companies like Samsung, Hyundai and LG [Chem]," three companies already involved with developing electric automobiles and their power sources.

HYUNDAI HITS THE ROAD

Seoul-based auto manufacturer Hyundai Motor Company developed its first electric hybrid auto in 1995, and unlike American car manufacturers, the Koreans did not junk their research when oil became cheap again.

At the recent Paris Auto Show, Hyundai showed off its new hybrid system, with a 207-volt Li-ion polymer battery powering a midsize SUV's 30-kilowatt electric motor. That motor works in tandem with a 175 horsepower, 2.4-liter four-cylinder engine. With the new system, the vehicle gets 38 miles/gallon and accelerates from zero to 60 mph (99kph) in 10.6 seconds, says the car maker.

The gas-electric hybrid will be sold in Korea as the Avante in 2009, and will be released in the US in 2010 as the Elantra. Meanwhile, Hyundai plans to introduce a hybrid version of its midsize Sonata sedan in 2011. And the car company says it will meet the US Congress' 2020 Corporate Average Fuel Economy standards - requiring vehicles to get 35 mpg - five years ahead of schedule, by 2015.

Hyundai developed its Li-ion polymer battery with Korean manufacturer LG Chem (see below). Unlike other lithium batteries or nickel-metal hydride (NiMH) batteries Li-ion polymer batteries can be molded into practically any shape, allowing the engineers to squeeze the power sources into any available space in the auto's interior, whether under a seat, or above a wheel-well.

This is unlike, for example, the US-made Tesla Roadster, which needs 6,831 battery packs with heavy metal casings containing a liquid electrolyte.

Hyundai estimates Li-ion batteries weigh about 35% less than NiMH batteries, and are 40% smaller overall. NiMH batteries also tend to only put out low voltage as well.

"The importance of developing futuristic, environmentally friendly cars is increasing for sustainable growth," said Chung Mong Koo, chairman of Hyundai, at the North American International Auto Show in January. "Therefore, technology for advanced cars, like the hybrid, is imperative."

WHEN LG MET GM

When US auto giant General Motors (GM) needed a battery supplier for its upcoming plug-in electric vehicle, the Chevrolet Volt, it turned to the Seoul-based LG Chem.

Under the deal, LG will supply Li-ion polymer batteries for the Volt from November 2010 until the end of 2015, and will spend about W1 trillion until 2013 to produce the batteries, LG says.

The Volt's 400 lbs. of batteries are projected to be the most expensive part of the vehicle, costing about $10,000. GM has talked about a $40,000 price tag for the Volt. However, once a certain level of mass production is reached, perhaps in the hundreds of thousands, though, the cost of the batteries is expected to go down.

The batteries will be manufactured in Korea, and then assembled at a $30m Michigan-based facility GM has scheduled to open in 2010. The company "has decided that battery design and production must become a core competency," if GM is expected to compete, said Rick Wagoner, chairman and CEO of GM, during a conference call.

The Volt, meanwhile, is scheduled to hit the streets in November 2010.

LG Chem produced a prototype of the Li-ion polymer battery in June 2008. Four months later the company announced its plan to invest W145.8bn to complete expansion of its battery production plant in Ochang, Korea, by August 2009.

LG Chem will also provide the batteries to Hyundai's affiliate Kia Motors, which plans to begin production of hybrid electric vehicles (HEV) in the second half of this year. The global HEV and electric vehicle market is expected to grow by an average of 47%/year, reaching $2.3bn in 2012 from $510m in 2008, projects the battery maker.

The company expects battery technology to dominate the HEV market for the next 15 to 20 years.

According to The Korea Times, LG Chem, Korea's largest chemical manufacturer, is the world's fifth-largest Li-ion battery producer, after Sanyo, Sony, Samsung SDI and BYD of Taiwan.

Meanwhile, Korean producers have recieved boosts from the battery recalls Sony and Sanyo have had to face. Some Li-ion batteries have the tendency to overheat, with several cases of fire being reported, most notably a series of laptop fires that were occuring a few years ago.

One of LG Chem's obvious strengths has been the company's ability to connect with strong partners, like GM and Hyundai. Most recently, with STMicroelectronics, the company has created a new automotive battery pack that extends the potential of electric autos and HEVs.

The two companies have developed a battery pack based on LG's Li-ion technology and ST's proprietary battery management circuitry.

Li-ion batteries are what are most often used in portable consumer electronic devices, like laptops and PDAs. These lithium batteries are much lighter than NiMH batteries and last longer. But higher power applications need a computer chip to regulate the charge/discharge cycle.

"Accurate and reliable control of the battery charging and discharging cycles makes Li-ion technology applications the established choice for low-power consumer applications as well as a leading contender for future high-power," says M.H. Kim, vice president of LG Chem's Battery Research Institute.

SAMSUNG UNDER THE HOOD

Samsung SDI, the world's third-largest producer of rechargeable batteries, created a 50:50 joint venture with German auto parts maker Bosch in June, to produce rechargeable batteries for HEVs.

Total investment is initially expected at $500m (€385.15m) over the next five years. However, "The amount could be quadrupled depending on the market situation," Samsung SDI director Park Young-woo noted. The company is aiming to produce 2m Li-ion battery cells for HEVs in 2010.

"The partnership with Bosch is a key catalyst for us to expand on the global battery market," said Samsung spokesperson Seo Hae-su, in June.

Samsung has engaged in detailed talks with the world's leading automakers including BMW, Audi and Ford, for the development of the batteries, the company says.

TRYING TO CATCH UP

With Japanese, Chinese and Korean manufacturers gaining the upper hand in car battery production, American auto companies and politicians have begun to call for federal programs to encourage US Li-ion battery manufacturing.

In mid-January, the National Alliance for Advanced Transportation Battery Cell Manufacture, a consortium of more than a dozen US battery developers, announced it was seeking up to $2bn to fund a major lithium battery manufacturing facility.

But while some are clamoring for a government hand-out, others are taking action: In October, Indianpolis, Indiana-based Ener1 acquired an 83% interest in Seoul-based Li-ion battery producer Enertech International.

Enertech is a large Li-ion battery producers in Korea, but behind LG and Samsung. "This acquisition gives us immediate scale and volume manufacturing ability, as well as an important beachhead for supplying Asian car makers that plan to use Li-ion technology in their electric drive vehicles," says Ener1 CEO Charles Gassenheimer.

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By: Ivan Lerner
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