2024-11-19
South Korea’s Ministry of Trade, Industry and Energy has designated Korea Zinc’s high-nickel precursor manufacturing technology—a key component for battery cathodes—as a national core technology under the Act on Prevention of Divulgence and Protection of Industrial Technology. The designation, announced by Korea Zinc on Nov. 18, highlights the strategic importance of the technology, which boosts energy density in advanced batteries and positions Korean battery makers ahead of their Chinese competitors.
The designation requires government approval for any overseas sale, posing a significant challenge to private equity firm MBK Partners, which is attempting to acquire Korea Zinc. MBK, known for its strategy of reselling acquired companies, may face hurdles in securing buyers for Korea Zinc under the new restrictions.
Precursors are compounds made by blending nickel, cobalt, and manganese, with the high-nickel variety containing over 80% nickel content. They are critical for the production of high-performance batteries, a field where Korea aims to maintain an edge over global competitors. With over 90% of precursors currently imported from China, Korea Zinc’s initiative to locally mass-produce high-nickel precursors has been deemed vital to national economic and security interests.
Full Article: Korea Zinc’s battery precursor technology designated national core technology
