South Korea to boost electric vehicle industry
The South Korean government announces plans to advance e-mobility both at home and abroad. Local EV subsidies are to help bring the number of electric vehicles in Korea to 430,000 BEVs and 65,000 FCEVs by 2022. Moreover, manufacturers will receive support to multiply ZEV exports.
The government in Seoul has not released any more details on their new EV subsidy policy apart from the above targets. However, it addresses not only buyers but also the industry by offering liquidity support and loan guarantees. The government also plans to boost production capacity of zero-emission cars tenfold, from the current 1.5 per cent to more than 10 per cent by 2022.
With that many more electric cars to make, exports must increase. By 2022, the number of electric vehicles destined for sale abroad shall grow from 36,000 at present to 250,000 units. The target for fuel cell vehicles is even more ambitious as the government aims for an increase by factor 17. Starting from the current low base, this results in 5,000 export FCEVs per year.
In addition, the South Korean government wants to raise its subsidies for domestic industry in research and development, including in the areas of chips and batteries. The latter industry may expect joint investments with the government to develop key technologies such as solid-state, lithium-sulfur and lithium-metal batteries.