Norway's battery companies are extending an invitation to South Korean counterparts to join forces and establish a new electric vehicle (EV) supply chain in the Nordic country. The move comes as Europe intensifies its efforts to reduce reliance on Chinese suppliers. At a conference in Pohang, industry group Battery Norway presented a compelling argument to Korean firms such as LG Energy Solution, Ecopro Materials, and Posco Future M, explaining why a collaborative approach would be beneficial. The event, organized by SNE Research, celebrated Pohang's designation as a "Battery Industry Special Zone."
Battery Norway CEO Pål Runde highlighted the increasing number of non-European companies setting up production facilities in Europe. Runde attributed this trend to new European battery regulations implemented in August and anticipated stricter rules surrounding battery material and production within the continent in the coming years. Though Norway is not an EU member, it agreed last year to address a challenge posed by the bloc's Brexit trade agreement regarding the future use of EV batteries produced in the country.
As an early adopter of electric vehicles, Norway aims to leverage its natural resources and develop a battery production and recycling industry. The country views this sector as one of seven focal points in its green industrial strategy. However, European battery companies face obstacles in terms of manpower and access to necessary components and manufacturing equipment due to a lack of local suppliers, as highlighted by BloombergNEF.
Runde emphasized Norway's clean energy availability, which aids in reducing carbon emissions in battery factories, and the country's advantage as an early adopter of EVs. This head start positions Norway to quickly establish battery recycling initiatives. Furthermore, Runde highlighted Norway's abundant mineral reserves, including nickel, cobalt, manganese, and particularly graphite, which is vital for anodes—the negative electrodes in EV batteries. The recent export control measures imposed by China on certain types of graphite have posed challenges for Korean battery manufacturers. Runde pointed out that Norway hosts the largest crystalline graphite producer in Europe, with a natural graphite mine located in the northern part of the country.
Morrow Batteries AG, based in Oslo, expressed its desire for increased partnerships with Korean battery materials manufacturers. The company previously signed an agreement with Posco Future in 2021 to develop and supply cathode and anode materials. Morrow's COO Andreas Maier highlighted Norway's attractive manufacturing location, particularly for companies engaged in synthetic graphite production, citing the country's low energy costs. Maier also noted that European automakers are seeking more local suppliers, indicating a growing trend towards onshore production.
In conclusion, Norway is actively enticing Korean battery companies to establish a strong collaboration in developing an EV supply chain in the country. With its abundance of clean energy, rich mineral reserves, and status as an early adopter of electric vehicles, Norway presents itself as an attractive location for battery production and recycling. As Europe endeavors to reduce its reliance on Chinese suppliers, increased collaboration between Norwegian and Korean companies could facilitate the continent's ambitions for a more independent and sustainable EV industry.