Korea Zinc, a global leader in non-ferrous metal smelting, announced that its precursor technology for secondary batteries has been designated as both "national core technology" and "national high-tech strategic technology" by the South Korean government. This technology, a key material for lithium-ion batteries, is jointly owned by Korea Zinc and its subsidiary KEMCO. It was recognized for its significant technical and economic value, both domestically and internationally, and its potential to drive industrial growth. The designation also underscores the potential national security risks and economic threats if the technology were to be leaked abroad.

With this official designation, Korea Zinc will be able to establish a self-sufficient supply chain for precursor materials using entirely domestic technology. This move strengthens the company’s position in the growing secondary battery industry, vital for energy storage and electric vehicles. Additionally, the company will implement protective measures against potential technology leaks in line with relevant laws.

The specific technology recognized by the government is a method for manufacturing cathode active material precursors with over 80% nickel content for lithium-ion batteries. Korea Zinc submitted its application for this recognition in September, which underwent two rounds of expert evaluations before receiving approval. The technology falls under the electrical and electronic sector for national core technologies and the secondary battery sector for high-tech strategic technologies.

The Korean government has established these designations to protect technologies with high technical and economic value, which are crucial to national security and could have severe implications if leaked abroad. Currently, over 70 technologies across various sectors, including semiconductors, electronics, and shipbuilding, are classified as national core technologies. The high-tech strategic technologies, on the other hand, are designated for their significant impact on national security, exports, and employment.

Korea Zinc's precursor technology will now be tightly regulated. Any export or foreign investment, such as mergers or joint ventures, involving this technology will require approval from the Ministry of Trade, Industry, and Energy. This regulation aims to safeguard the country’s economic interests and technological security.

Domestically, South Korea has been heavily reliant on China for cathode active materials (CAM) and precursors, with 97% of precursor imports coming from China in 2023. To address this, Korea Zinc is accelerating its efforts to build a domestic production system for high-nickel precursors. This includes the construction of an advanced nickel smelter in Ulsan through KEMCO, with trial operations slated for next year.

In partnership with LG Chem, KEMCO formed the Korea Precursor Corporation (KPC), which has made significant strides in precursor production. In March 2023, KPC completed the world’s first precursor plant with process innovations that increased capacity. This technological breakthrough allows KPC to produce higher-quality precursors more efficiently, positioning it to compete with global leaders, including Chinese manufacturers.

Korea Zinc’s proprietary technology is expected to lower processing costs, increase production efficiency, and enhance the quality of precursors, further boosting South Korea's global competitiveness and securing the country’s position in the growing battery industry. Through diversifying the supply chain for critical minerals, Korea Zinc aims to reduce reliance on foreign sources and strengthen the nation’s economic security.