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Korean Industrial Insight No. 4 of AI, Semiconductors, Batteries and Electric vehicles |
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2024-09-02 |
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Ⅰ. AI INDUSTRY TRENDS
1. 146 Digital Textbooks Submitted for Certification Review; Results to be Announced by End of November
The certification review for artificial intelligence (AI) digital textbooks, scheduled for implementation in schools starting March next year, is officially underway.
The Ministry of Education announced on the 22nd that as a result of applications received from the Korea Institute for Curriculum and Evaluation, and the Korea Foundation for the Advancement of Science and Creativity, a total of 146 textbook submissions from 21 applicants have been received for the AI digital textbook certification review.
The Ministry of Education previously announced that starting next year, AI digital textbooks will be introduced for mathematics, English, and information technology subjects for 3rd and 4th graders in elementary school, 1st graders in middle school, and 1st graders in high school.
In response, existing textbook publishers and edtech companies have formed consortia to develop AI digital textbooks for the upcoming implementation and have entered the certification review process.
The certification review institution is to conduct preliminary investigations and the main review by September, followed by a review of revised versions from October to November. The final certification results are expected to be announced on November 29 via the official gazette.
Meanwhile, there is an ongoing debate regarding the introduction of AI digital textbooks.
Some argue that AI digital textbooks can analyze students' weaknesses and enable personalized learning. However, others point out that the increased exposure to digital devices can have significant negative effects and question the effectiveness for students who struggle academically.
According to the educational circles, opinions regarding the introduction of AI digital textbooks are sharply divided just one semester before their implementation.
Supporters of AI digital textbooks highlight the advantage of accumulating student learning data and enabling personalized learning by repeatedly focusing on areas of weakness.
The head of the Korea Education and Research Information Service stated, "AI digital textbooks will serve as a powerful tool for teachers to support students on a one-on-one basis," adding that they can do more than just solve problems; they can check pronunciation and identify weaknesses in areas like coding for instance.
A spokesperson for the Korea Federation of Teacher's Associations emphasized, "Using AI digital textbooks will be essential in future classroom environments," noting that they will complement paper textbooks and be beneficial for learning.
However, the opposition also presents significant concerns. Critics argue that prolonged exposure to digital devices from a young age can have detrimental effects.
Professor Byun JaeHwan from Wichita State University pointed out during a monthly forum organized by the Korea Education Development Network in June that "many studies have shown that increased exposure to digital devices can hinder cognitive development in children and adolescents or lead to psychological problems."
While it is claimed that AI technology enables personalized learning, there are criticisms that it may not fundamentally help academically underperforming students, as it primarily focuses on repetitive learning.
At the same event, Senior Researcher Ju Jung-heun from the Seoul Education Policy Institute noted, "So far, platforms using AI technology have provided customized services by selecting questions based on the learner's grade level." She added, "These platforms are largely based on correctness rather than diagnosing the learner's level, resulting in a form of personalized learning that revolves around repetition."
2. SK Group Leaps into ‘AI’, Outlining Vision at Icheon Forum
- Chairman Chey Tae-won emphasizes ‘AI Leadership’ as the group’s annual event kicks off
- SK Hynix, SK Telecom, and SK Innovation to establish an integrated AI-enhanced Ecosystem
As SK Group has identified artificial intelligence (AI) as a key growth driver, it will hold the Icheon Forum and discuss a blueprint for building an AI ecosystem. The plan is to actively promote AI strategies at a company-wide level to foster sustainable growth for SK Group.
SK Group holds the knowledge management platform "Icheon Forum 2024" at the Walkerhill Hotel in Gwangjin-gu, Seoul. With the management strategy meeting in June and the CEO seminar in October, the Icheon Forum is considered one of SK Group's three major annual events. Initiated in 2017 by Chairman Chey Tae-won, this year’s forum marks the eighth. This year's forum will focus on AI as a critical future pillar, with Chairman Chey and key executives engaging in in-depth discussions on strengthening the AI value chain.
Highlighting SK Group’s commitment to AI, Chairman Chey has demonstrated significant performances in this area throughout the year. During the management strategy meeting in June, he remarked, "In the U.S., it seems there is nothing else to discuss about than AI, reflecting the winds of strong change in this field." He stressed the need of leveraging the group's capabilities to enhance "AI value chain leadership," from AI services to infrastructure.
In April, SK Group began establishing global partnerships by meeting with leaders from major tech companies in the industry, including NVIDIA, TSMC, OpenAI, Microsoft, Amazon, and Intel. In June, Chairman Chey also met with OpenAI CEO Sam Altman to discuss collaboration in the fields of AI and semiconductors.
In particular, SK aims to solidify its position in the AI semiconductor sector. During his opening remarks, Ryu Young-sang, CEO of SK Telecom and chair of the Supex Pursuit Council's ICT Committee, stated, "AI chips are already being led by Hynix with high bandwidth memory (HBM) at the forefront, and we plan to invest over 82 trillion won in the next five years to further enhance our competitiveness."
Earlier, during the management strategy meeting, SK Hynix announced plans to invest a total of 103 trillion won over the next five years, with approximately 80%, which is 82 trillion won, allocated to AI-related businesses. In response, Chairman Chey visited the SK Hynix headquarters at the Ichon campus on the 5th to inspect the HBM production line and emphasized the importance of securing technological competitiveness. SK Hynix plans to begin mass production of its HBM3E 12-layer products in the third quarter of this year, with deliveries expected to start in the fourth quarter.
SK Telecom (SKT) is promoting an "AI Pyramid" strategy focused on AI infrastructure, AIX (AI transformation), and AI services. CEO Ryu noted, "Our AI services will target the B2C market with the personal assistant service A-dot, launched last year, and the upcoming global personal AI assistance service GPAA, which is set to launch in the U.S. by the end of this year.” He also mentioned that in the B2B market, SKCNC, SKT, and SK Networks will collaborate to develop business models together.
Additionally, SK Group plans to actively pursue a rebalancing of its subsidiaries to expand its AI assets. The recent merger between SK Innovation and SK E&S is aimed at establishing a foundation for AI transformation while also aiming to position itself as a “total energy solution company”. In a subsequent session, CEO Ryu explained, “SK Innovation and SK E&S, as Asia’s biggest energy company, will have opportunities to provide various energy solutions, such as liquid immersion cooling for AI data centers, LNG power generation, solar, wind, and hydrogen.
On the second day of the forum, the 20th, participants will share practical case studies and deepen their understanding of SK Group’s core management philosophy, SKMS (SK Management System). On the last day, which is the 21st, the event will conclude with Chairman Chey and SK members reflecting on the forum’s achievements.
3. Samsung’s AI Screen Focused on AI Home
- “Tizen OS to receive free upgrades for seven years”
- AI TVs to connect and control smart devices in homes, serving as ‘AI Home Device’
- Expanding the Tizen OS ecosystem to achieve ‘Personalized AI’ value
Samsung Electronics has declared 2024 as the first year of the “AI Screen Era.” On the 22nd, it announced that customers purchasing AI TV (including 2024 model and part of 2023 model) in the second half of this year will receive free Tizen OS upgrades with new AI features for the next seven years.
This initiative aims to accelerate the popularization of “AI home life” by supporting users to enjoy their AI TVs conveniently for a long period of time.
◇ AI TV, Enhanced viewing experience for all; Low-resolution contents to high-quality
Samsung Electronics showcased its AI screen technology to the press at its Suwon Digital Research Center (R4). The company’s AI TV upscales low-resolution content to 8K quality, allowing viewers to clearly see details such as hair strands and fabric seams.
The viewers will be able to enjoy low-resolution contents from affordable over-the-top media services (OTT) and even decades-old dramas or live performances in vivid clarity.
Features such as ‘Active Voice Pro,’ which detects volume differences and amplifies voices, and ‘Moving Sound Pro,’ which provides special audio based on screen movement, enhance the viewing experience.
Accessibility has also been improved through advanced AI technology.
The ‘Relumino Mode’ sharpens colors and outlines, enabling viewers will low vision to enjoy content without the need for additional devices.
The ‘Audible Subtitles’ feature uses AI to detect text within videos and delivers it audibly, while an external camera recognizes users’ specific actions to adjust subtitle positions or provide sign language interpretation.
At the event, Samsung Electronic introduced the ‘Generative Wallpaper’ feature, powered by its generative AI, Gauss, for the first time.
◇ AI TV as an ‘AI Home Device’ connecting smart devices in homes
Samsung Electronics is enhancing the role of its AI TV as ‘AI Home Device’ that connects and controls various appliances within the home.
Equipped with SmartThings hub, AI TVs can connect and manage AI appliances, such as lighting, curtains, and other smart devices.
The company is also collaborating with construction firms to develop living spaces where AI screens serve as the main feature of the ‘AI Home.’
◇ Expanding the Tizen OS ecosystem. AI to be applied to popular TVs
The Tizen OS, which is applied to Samsung Electronics TVs, is one of the largest TV platforms in the world. It has been installed on over 270 million Samsung smart TVs as of last year.
Samsung Electronics offers various services and content, including Samsung TV Plus, Gaming Hub, and SmartThings, through Tizen OS.
In July, the company expanded the Tizen OS ecosystem by integrating it into products from global TV manufacturers, such as the Loewe Stella TV in Europe.
Samsung is also broadening the application of AI TV across various product lines.
It plans to apply AI features not only to premium models but also to entry-level TVs.
Additionally, the company plans to introduce a translation subtitle feature that provides real-time translations of foreign languages into Korean text in early next year.
Ⅱ. SEMICONDUCTOR INDUSTRY TRENDS
1. SK and Samsung’s Battle to ‘Secure Semiconductor Manpower’
- Recruitment for new and experienced begins September, with executives attending job fairs for graduates and postgraduates
- Preparations underway for talent acquisition ahead of new factories in Taylor and Indiana, USA.
Samsung Electronics and SK Hynix are intensifying their efforts to secure semiconductor talent in the second half of this year, following a strong push in the first half. They will be conducting various types of recruitment, including internships, new graduate positions, and experienced professionals, both domestically and globally.
Samsung starts its ‘Second Half Regular Recruitment for New Employees’ early next month. The Device Solution (DS) division, responsible for Samsung’s semiconductor business, will announce job openings across various divisions, including memory, system LSI, and foundry.
SK Hynix is set to conduct its ‘Second Half Recruitment for New Employees’ aimed at graduates and those expected to graduate in February next year, as well as a ‘Junior Talent’ program for those with 2 to 4 years of experience.
SK Hynix is also expected to recruit full-time production staff in the second half of the year, with reports indicating that the company aims to hire a three-digit number of production workers throughout the year.
The ongoing recruitment efforts by both companies are viewed as part of their strategy to dominate the artificial intelligence (AI) semiconductor market, including high-bandwidth memory (HBM).
Earlier this year, Samsung Electronics and SK Hynix hired talent related to next-generation memory, including HBM development and Compute Express Link (CXL) product development.
Executives from both companies are also actively engaged in securing semiconductor talent.
Samsung Electronics is hosting ‘Tech&Career (T&C) Forum’ at six universities starting with Yonsei University and Seoul National University, followed by Pohang University of Science and Technology (POSTECH) on the 26th, Korea Advanced Institute of Science and Technology (KAIST) on the 27th, Sungkyunkwan University on the 28th, and Korea University on the 29th.
The T&C Forum, held annually since 2016 by the Device Solutions (DS) division, aims to discover and train semiconductor talent among graduates.
This year, executives in charge of technology in the DS division will participate, explaining the company’s culture, key products, and technologies.
SK Hynix is also holding ‘Tech Day 2024,’ a recruitment event for master's and doctoral candidates, at five universities including Seoul National University, Pohang University of Science and Technology (POSTECH), KAIST, Yonsei University, and Korea University, until the 10th of next month.
The companies are also actively seeking to secure overseas talent, particularly ahead of its new factory establishment in the U.S.
Samsung Electronics is investing $17 billion (approximately KRW 22 trillion) to build a foundry plant in Taylor, Texas, with the goal of startings operations in 2026.
In line with this, the company is also pursuing collaborations with nearby universities as a strategy to secure talent.
The Samsung recruiting team plans to visit 12 campuses nationwide, starting with Texas A&M University early next month, to recruit students for summer internships next year.
Last year, Samsung supported a talent development program at Texas A&M with a $1 million investment, indicating a strong focus on nearby universities. This measure is seen as an effort to attract engineering students interested in the semiconductor industry.
SK Hynix is also running an internship program in the U.S. and is expected to recruit personnel for its future advanced packaging production facility for AI memory, set to be established in West Lafayette, Indiana.
In April, SK Hynix announced plans to invest $3.87 billion in building the advanced packaging plant in Indiana and to collaborate with local research institutions, including Purdue University, on semiconductor research and development.
2. Siemens Ranks Third in Semiconductor Design. “Samsung Foundry Enables Supply of Advanced Processes”
The rapid rise of artificial intelligence (AI) has led to an increased demand for high-performance semiconductor design, highlighting the importance of electronic design automation (EDA) technology.
Siemens, one of the world's top three EDA companies, has identified advanced processes and packaging for AI semiconductors as a new opportunity. The company is collaborating with Samsung Electronics Foundry in South Korea to secure more customers.
Mike Ellow, CEO of Siemens Silicon Systems part, stated at a press conference held on the 22nd at the Lotte Hotel in Songpa-gu, Seoul, “The Samsung foundry is essential for providing advanced process technology below 5 nanometers (nm) stably to the global market.” He added, “South Korea not only has the world’s best competitiveness in memory semiconductors but is also an essential market for successfully advancing the three-dimensional integrated circuit (3DIC) business.” The press conference was held in conjunction with the "Siemens EDA Forum 2024," where Siemens EDA showcased technological trends from both the company and its partners.
EDA refers to software that automates the complex and difficult process of semiconductor design. As semiconductors become increasingly integrated, with hundreds of billions of transistors, the use of EDA in the design process is critical.
Recently, the advancement of semiconductor design and manufacturing with cutting-edge processes and packaging has increased the importance of EDA. If minor errors are overlooked during the design phase leading to significant issues during manufacturing, the produced semiconductors may need to be discarded. To meet customers' product launch schedules while minimizing costs, it is crucial to utilize EDA for thorough validation before starting the manufacturing process.
The global EDA market is primarily dominated by three key players: Synopsys, Cadence, and Siemens EDA. According to market research firm TrendForce, last year, Synopsys led the global EDA market with a 32% market share, followed closely by Cadence with 30%, while Siemens EDA ranked third with a 13% share. The world’s major semiconductor design and manufacturing companies utilize the software provided by these three companies.
AI semiconductors require powerful performance as they handle extremely rapid computations based on large-scale data. From the perspectives of semiconductor design and manufacturing, the latest processes and advanced packaging techniques, including 3DIC, are utilized.
Siemens EDA anticipates business growth based on advanced processes. Currently, the most advanced technology is 3nm. Samsung, TSMC, and Intel are set to begin mass production of 2 nm processes starting next year. Siemens EDA's main product targeting the advanced process sector is ‘Calibre.’ This software is currently utilized by the top 50 semiconductor firms. It is primarily used in the physical verification process to ensure that semiconductor circuits are manufactured correctly and function without issues during the production process.
3DIC, a technology of stacking different types of semiconductors, such as processing and memory chips, to function as a single unit, relies heavily on close collaboration between EDA companies and foundries. While it can enhance semiconductor integration density and improve power efficiency, the advanced nature of this technology makes it complex and costly. In order to ensure stable production schedules and volumes, thorough validation using EDA tools is crucial.
Siemens EDA is working together with Samsung Foundry to develop 3DIC technology. It has increased design efficiency by optimizing its EDA in line with Samsung's latest semiconductor processes. Customers can utilize Siemens EDA's software to develop and validate high-performance semiconductors based on Samsung's latest processes.
In the domestic market, the company plans to seek additional collaborations with AI semiconductor companies beyond Samsung Electronics and SK Hynix. An official of Siemens EDA stated, “There are opportunities to collaborate with new fabless design companies and firms related to AI and automotive semiconductors in South Korea. We are also seeking opportunities with Design Houses that partner with Samsung Electronics.”
3. Samsung Electro-Mechanics Accelerates Entry into Semiconductor Package Substrate Market with Expanded FCBGA for Servers.
- Responding to high-growth semiconductor demand in server, AI, automotive, and networking sectors
- Proactively targeting server FCBGA market with 2 trillion won AI-driven smart factory in Vietnam
- Aiming for over 50% share of high-value FCBGA products by 2026
Samsung Electro-Mechanics is set to target the global market by expanding its semiconductor package substrate business. With its substrate technology, the company aims to meet the growing demand in the semiconductor industry for 5G antennas, ARM CPU, and sectors such as servers, automotive, and networking.
For this, Samsung Electro-Mechanics plans to increase the share of high-value FCBGA products, such as server, AI, automotive, and networking segments, to over 50% by 2026.
The current challenge in the semiconductor industry lies in the substrate technologies capable of supporting performance in areas such as robotics, the metaverse, and automatic driving. In particular, FCBGA (Flip Chip Ball Grid Array) technology, which is applied in big data and AI applications, demand high technology, such as scaling, layer expansion, fine circuit implementation, and material integration.
Samsung Electro-Mechanics held a press seminar on the 22nd and showcased it FCBGA (Flip-Chip Ball Grid Array) substrate technology and revealed its future strategies.
The semiconductor substrates serve as a connection between semiconductor chips and the main circuit board. They are essential to bridge the gap in terminal spacing, which is approximately 100μm for semiconductor chips and about 350μm for the main board.
While semiconductor substrates focus on the connection medium, package substrates encompass overall protection and integration of the system, resulting in more complex structures.
FCBGA is a package substrate that connects high-density semiconductor chips to the substrate using flip-chip bumps, thereby enhancing electrical and thermal characteristics. Additionally, FCBGA employs flip-chip technology, which flips the chip to connect it directly to the substrate. This approach shortens the electrical path between the chip and the substrate, leading to enhanced performance.
Unlike traditional PCB substrates, FCBGA is designed with a multilayer structure that supports high-density circuit patterns and fine pitches. Thus, it is primarily used in CPUs and GPUs for PCs, servers, networks, and automotive applications.
Samsung Electro-Mechanics is particularly targeting the server FCBGA market. Server FCBGA substrates are over four times larger in area compared to standard PC FCBGA substrates and feature over 20 layers, making their manufacturing more complex.
Also, this is closely integrated with TSV (Through Silicon Via), a leading technology in the semiconductor post-processing market, which enhances scalability. TSV connects various layers within the chip through vias that penetrate the silicon.
By combining FCBGA substrates with TSV technology, electrical performance can be improved, and thermal management can be enhanced, thereby helping to alleviate thermal and mechanical stress, which is critical for AI semiconductors.
The company has established an advanced high-end production base in Vietnam with a KRW 2 trillion investment. Notably, the facility in Vietnam operates as a smart factory, utilizing an intelligent manufacturing system based on AI deep learning technology.
According to Samsung Electro-Mechanics, the market for automotive substrates is expected to grow by 10%, the server substrate market by 15%, the AI semiconductor substrate market by 21%, and the Arm CPU substrate market by 31% by 2029.
In response to this growth, the company plans to increase the share of high-value FCBGA products in the server, AI, automotive, and network sectors to over 50% by 2026.
In July, Samsung Electro-Mechanics signed a supply contract for server FCBGA with semiconductor company AMD for high-performance computing (HPC) and has started mass production of the products at its Vietnam facility.
An official from Samsung Electro-Mechanics stated, "We are strengthening our collaboration with customers by securing next-generation technologies required in the semiconductor substrate market, including ultra-large area technology over 110mm, ultra-high-layer technology with over 26 layers, and EPS technology that integrates passive elements within the package substrate."
Ⅲ. BATTERY INDUSTRY TREND
1. E-Scooters Purchased from AliExpress and Temu Pose Fire Risks: Battery Explosions Likely
- Concerns over battery explosions, older models with poor design pose additional hazards
- Annual decrease in fire incidents related to shared E-scooters
As incidents of electric vehicle explosions have emerged as a significant social issue, concerns over fires in electric scooters are also on the rise.
Reports indicate that uncertified products purchased from C-commerce platforms (Chinese e-commerce platform) like AliExpress and Temu, as well as older electric scooters designed without battery covers, carry a high risk of battery fires. Unlike shared E-scooters, which undergo voltage management to prevent overcharging, low-cost products purchased by individuals are more likely to have product defects and lack regular maintenance.
According to the National Fire Information System, there have been a total of 41 reported fires involving E-scooters (classified as ignition devices) from January 1 to August 23 of this year. In the same period last year, there were 71 incidents, while the first year of statistics in 2022 recorded 95 cases.
The decrease in fire incidents can be attributed to the reduction in the number of companies from over 20 during the early commercialization of E-scooters in 2018-2019 to around 10 today. The decrease can also be explained by the significant impact of transitioning to newer models equipped with battery covers.
The E-scooter industry identifies “uncertified” low-cost scooters sold on C-commerce platforms as a significant risk.
A representative from a related company stated, “"Uncertified low-cost products purchased online have a higher risk of overheating during overcharging, making them prone to fires. Electric products require at least minimal safety assurances, such as KC certification, but C-commerce products are manufactured using low-cost parts without any domestic certification or safety standards, posing serious safety risks.
Under the Electrical Appliances and Consumer Goods Safety Control Act, all electrical products and items that come into direct contact with the body, such as clothing, must obtain KC (Korea Certification) certification when manufactured or distributed in South Korea. This certification ensures that products meet safety standards regarding risks such as electric shock and electromagnetic radiation, and it also applies to imported goods of manufacturers and importers.
However, products acquired through direct import, purchasing agents, or parallel imports are exempt from KC certification. The amendment to the Act that came into effect in July 2018 exempted 215 categories of items from this requirement, including consumer electronics like digital TVs and vacuum cleaners, as well as household textiles such as adult clothing, underwear, bedding, leather goods, and contact metal accessories.
Ultimately, purchasing an E-scooter without KC certification due to its low price poses great risks, including potential battery explosions or fire incidents.
Older models provided in early shared scooter services also carry considerable fire risks, as many are designed without battery covers.
An industry insider explained, "Older scooter models, particularly those distributed by early shared scooter companies, were often designed without battery shields. This was done to prioritize convenience over safety to facilitate battery replacements." They added, "As a result, these models are more susceptible to direct exposure to hot surfaces or to increased risk of fire and explosions when in impacts."
2. K-Battery BMS Patents Surpass China and Japan
- Led by LG Energy Solution
Korean battery companies have shown a significantly higher number of patent applications for Battery Management Systems (BMS), which function as the "brain" of electric vehicle batteries, compared to their Chinese and Japanese counterparts. Among domestic battery companies, LG Energy Solution has emerged as the frontrunner.
A comprehensive survey of BMS-related patents conducted by LG Energy Solution in and patent information research firm WIPS showed that between 2018 and 2022, the top 10 battery companies from South Korea, China, and Japan collectively filed a total of 13,500 patents. Notably, over half of these patents, accounting for 55% (7,400 patents), belong to LG Energy Solution, Samsung SDI, and SK On.
By company, LG Energy Solution recorded the highest number of BMS patents during the same period, with a total of 5,475 applications. This represents 40.6% of the total patents filed by the top 10 companies surveyed and represents 74% of the patent filings combined from the three major Korean firms. Moreover, this patent count is 1.2 times greater than the total of five Chinese firms and 3.5 times greater than the combined filings of two Japanese firms.
The significant increase in LG Energy Solution's BMS-related patent applications has been particularly notable since its spin-off from LG Chem in 2020. For three years, from 2020 to 2022, the company filed approximately 800 BMS-related patents each year.
BMS plays a crucial role in ensuring optimal battery conditions by monitoring any abnormal signs in the battery cells not only during driving and charging but also while the vehicle is parked. By utilizing various data, including current, voltage, and temperature, it detects and addresses anomalies such as voltage drops during charging, abnormal degradation and discharge, and specific cell capacity discrepancies, in advance.
3. K-Batteries Face Crisis Amid Global Dominance
Since 2020, approximately half of the electric vehicles sold worldwide (excluding the Chinese market) are equipped with K-batteries produced by South Korean companies. Excluding China, which has tightly locked down its market with substantial subsidies, automotive manufacturers from major countries like the United States, Germany, Japan, and France are actively competing to secure K-batteries. Since 2020, the market share of the three major K-battery companies in non-Chinese markets has remained around 50%. Even when including the Chinese market, where local firms hold a near monopoly, their share is still approximately 25%. At the end of last year, LG Energy Solution won a battery supply contract with Toyota, the world’s largest automaker, resulting in nine out of the top ten global automotive firms becoming its clients. Furthermore, several U.S. state governments, as well as Canada and European countries, are engaged in a competition to attract K-battery manufacturing facilities.
This success can be attributed to the preceding stages of materials, components, and equipment, where the K-battery ecosystem has operated as a "super supplier." A super supplier refers to a company in the component sector, like ASML in semiconductors, that possesses such competitive strength that client firms are willing to wait in line for their products. It is impossible to produce high-performance batteries without essential materials like cathode materials. Also, without high-quality components and equipment, it is difficult to ensure battery production yield rates. K-batteries have established a robust supply chain that spans from materials to finished battery products.
However, amidst the recent electric vehicle crisis, this super supplier ecosystem is beginning to be shaken. The operating profits of the three major battery companies have plunged, and large-scale investments are now slowing down. The construction of a 1.2 trillion won cathode materials plant in Canada, a joint venture between EcoPro and SK On with Ford, has been temporarily halted, and Posco Group has lowered its targets for the secondary battery business. Industry insiders express concerns that "if we cannot maintain a robust ecosystem, we risk losing our competitive edge when the race wfor electric vehicles resumes in the future."
Ⅵ. ELECTRIC VEHICLE INDUSTRY TRENDS
1. “Five-Star Rating”: Hyundai Motor Group’s E-GMO Electric Vehicles Earns Top Ratings in U.S. and European Crash Tests
- Five models, including Ioniq 5 and Ioniq 6, achieve top scores in Euro NCAP
- E-GMO enhances safety through differentiated electric vehicle design, prioritizing passenger protection
Hyundai Motor Group has announced that its electric vehicles built on the dedicated platform 'E-GMP' have received outstanding scores in major global crash safety evaluations.
According to the company, electric vehicle models including the Genesis GV60, Hyundai Ioniq 5, Hyundai Ioniq 6, Kia EV6, and Kia EV9 have all secured the highest rating of five stars in the European New Car Assessment Programme (Euro NCAP). The Kia EV3, which is set to launch this year, was not yet included in the evaluation.
Additionally, the Genesis GV60 and three other electric vehicles have received the highest rating of 'TSP+' (Top Safety Pick Plus) from the Insurance Institute for Highway Safety (IIHS) in the United States. Also, GV60, Ioniq 5, and EV6 achieved five-star ratings in the North American New Car Assessment Program (NCAP).
Hyundai Group's E-GMP Crash Safety Assessment (Provided by Hyundai Motor Group)
Manufacturer Model IIHS North American NCAP Euro NCAP Korean KNCAP
Genesis GV60 TSP+ ★5 ★5 1st Rating
Hyundai Ioniq 5 TSP+ ★5 ★5 1st Rating
Ioniq 6 TSP+ Under evaluation ★5 1st Rating
Kia EV6 TSP+ ★5 ★5 1st Rating
EV9 TSP Under evaluation ★5 1st Rating
E-GMP, which is first introduced by Hyundai Motor Group in December 2020, is a dedicated electric vehicle platform incorporating advanced body technology and passenger safety expertise. Designed specifically for battery electric vehicles, it features a unique structure and layout that distinguish itself from traditional internal combustion engine platforms.
Hyundai has explained that the design utilizes the battery pack as a structural element to enhance body rigidity, while aluminum extrusions are applied inside the side sills, securing safety during side-impact collisions.
Additionally, in the event of a rear-end collision, the design intentionally allows for deformation of the rear member to absorb shock, while the lower members are reinforced with hot-stamped steel to prevent battery damage. Furthermore, a multi-skeletal structure is helps to disperse impact energy during frontal collisions.
In this year's IIHS evaluations, Hyundai Motor Group secured the top position with 20 models receiving TSP ratings or higher.
An official from Hyundai Motor Group stated, “Thanks to the safety design of the E-GMP platform, our electric vehicle models have earned top scores in new car safety assessments across major countries. We will continue to invest in research and development to secure comprehensive passenger safety."
2. Electric Vehicle Industry Adopts ‘Battery Anomaly Alerts’
- Hyundai expands service to Kia
- Mercedes-Benz utilizes remote control apps for notification
- BMW notifies owners through dedicated team
According to the automotive industry, Hyundai Motor Group has expanded its battery anomaly alert service, previously applied to Hyundai and Genesis vehicles, to include Kia starting from the 21st.
Since the end of 2020, Hyundai and Genesis have been offering a service through their BMS (Battery Management System) that notifies consumers via text messages and phone calls when any battery anomalies are detected. This service monitors various signs of issues, including voltage deviations, insulation resistance, changes in current, voltage, and temperature, addressing potential defects in battery cells or signs of cell short circuits caused by impact, which are responsible for most electric vehicle battery fires.
Mercedes-Benz also sends alerts when anomalies are detected during driving, charging, or parking, utilizing its BMS. Customers can receive notifications via their preferred method, such as text messages, emails, or app notifications, by subscribing to the "Mercedes me" remote control app and consenting to provide personal information. The company monitors battery voltage, current, temperature, and insulation, providing consumers with vital information about charging capacity and maximum performance levels.
BMW provides notifications through its comprehensive service called “Proactive Care,” which categorizes alerts into four levels based on the vehicle's condition. The vehicle continuously checks its battery charge status, temperature, remaining capacity, and maximum performance levels. If any problems are detected, the BMW Proactive Care team promptly contacts the owner to inform them of necessary measures.
GM Korea is to launch its notification service soon via the remote control app "OnStar."
3. Government Mandate Disclosure of Electric Vehicle Battery Information, Accelerating Implementation to October
The ruling People Power Party and the South Korean government have announced plans to to mandate the disclosure of battery information by electric vehicle manufacturers.
In a briefing following a high-level party-government meeting, the ruling party's chief spokesperson stated, “We intend to mandate the disclosure of battery information that manufacturers are currently implementing voluntarily. Additionally, the battery certification system, originally set to be implemented in February next year, will be accelerated and launched as a pilot project starting in October of this year.”
The spokesperson also mentioned, “We plan to conduct free annual inspections in collaboration with the industry to assess the safety of electric vehicle batteries. We also decided to expand the availability of smart chargers, which can control excessive charging, with a goal of deploying up to 90,000 units by next year.”
The government and ruling party have also announced plans to expand the distribution of BMS, which remotely diagnose battery conditions and alert consumers and manufacturers of any issues.
Additionally, in relation to recent electric vehicle fires in underground parking lots, the government plans to improve regulations requiring newly constructed buildings to install wet sprinklers capable of early fire detection and prevention in all underground parking facilities. They also plan to deploy fire suppression equipment for electric vehicle fires across all fire stations nationwide.
The chief spokesperson stated, “We discussed comprehensive measures to alleviate public concerns stemming from the electric vehicle fire that occurred in an underground parking garage in Incheon on the 1st, ensuring that such large-scale fires do not happen again."
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‘Patent information’ is also a national asset…enactment and enforcement of ‘industrial property information act’ (News Letter No. 536)
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Korean Industrial Insight No. 6 of AI, Semiconductors, Batteries and Electric vehicles in Chinese
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