Korean Power Industry's R&D Drive to Lead Global Energy Market Shift
Key Ideas
- Korean battery and power device companies are strategically aiming to tap into the global AI data center market, emphasizing the pivotal role of energy storage systems in ensuring stable power supply.
- The US tariffs on Chinese ESS provided an opportunity for Korean companies like LG Energy Solution, Samsung SDI, and SK On to expand their global presence and enhance their market competitiveness.
- Fuel cells, particularly solid oxide and phosphate fuel cells, are gaining traction as viable solutions for ensuring stable power supply in AI data centers, with companies like SK Ecoplan and Doosan Fuel Cell taking significant steps in this direction.
- Industry experts stress the importance of collaborative R&D efforts and unity among Korean battery companies and the power grid industry to secure global orders in the fiercely competitive power infrastructure market.
The Korean power industry is undergoing a significant transformation, with a focus on research and development (R&D) to lead the global energy market shift and overcome challenges like the tariff war. At the Korea Reboot Forum, Koo Ja-kyun emphasized the crucial role of R&D in enabling Korea to navigate the evolving energy landscape. With the rise of Generative AI, the competition for AI hegemony is increasingly centered around power-related technologies such as energy storage systems (ESS) and fuel cells. Korean battery giants like LG Energy Solution, Samsung SDI, and SK On are strategically positioning ESS as a key tool to compete with China in the global market.
The imposition of US tariffs on Chinese ESS opened up opportunities for Korean companies to expand globally. LG Energy Solution, Samsung SDI, and SK On are ramping up their ESS production and supply capabilities in regions like North America and Europe. Fuel cells, including solid oxide and phosphate fuel cell technologies, are also gaining prominence for ensuring stable power supply in AI data centers. Companies like SK Ecoplan and Doosan Fuel Cell are actively involved in fuel cell localization efforts and business expansion.
Hyundai Electric, Hyosung Heavy Industries, and LS Electric are targeting the global data center market with advanced power infrastructure technologies. The industry emphasizes the need for collective R&D efforts and collaboration between battery companies and the power grid sector to secure global orders and enhance competitiveness. The Korean power industry's strategic investments and collaborative approach highlight its determination to lead the energy market shift and drive innovation.