LG Energy Solution, one of the world's largest electric-vehicle battery makers, has signed a memorandum of understanding with the Korea SMEs and Startups Agency (KOSME), a state-backed body that supports small and mid-sized enterprises, to improve the competitiveness of South Korea's domestic battery industry.
The agreement, signed on 24th June 2025, commits both parties to nurturing small and medium-sized companies operating in the battery sector and to reinforcing domestic supply chains. Under the arrangement, LG Energy Solution will provide technical development support and help smaller firms commercialise their technologies, while KOSME will offer complementary financial and managerial assistance.
The deal reflects a broader anxiety within South Korea's battery industry. Suppliers of the materials, components, and manufacturing equipment that feed into battery production are predominantly small businesses, and their ability to compete globally is widely regarded as one of the sector's most pressing weaknesses. As Chinese battery manufacturers continue to expand their market share and undercut rivals on price, calls to systematise and strengthen South Korea's domestic supply chain have grown louder.
"Through this collaboration, we intend to contribute to raising the overall competitiveness of South Korea's battery ecosystem," an LG Energy Solution spokesperson said.