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Billions Pumped Into Korea Battery City With China In its Sights

The city of Pohang built up a world class steel industry over decades. Now it’s turning to EV batteries. 

The sun sets over the Posco steel mill in Pohang, South Korea, on July 17, 2018. The city is increasingly  seen as the country’s new capital for the electric vehicle battery industry. 

The sun sets over the Posco steel mill in Pohang, South Korea, on July 17, 2018. The city is increasingly 

seen as the country’s new capital for the electric vehicle battery industry. 

Photographer: SeongJoon Cho/Bloomberg
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A South Korean city home to one of the world’s biggest steelmakers is betting its manufacturing expertise, plus billions of dollars in investments and government incentives can help it dominate a 21st century industry: electric vehicle batteries. 

Companies in the southeastern hub of Pohang — famous for Posco Holdings Inc. steel mills and one of the country’s elite universities — are aggressively building out EV battery campuses as carmakers hurry to find reliable suppliers outside China. Three South Korean giants in the global battery market — LG Energy Solution Ltd., Samsung SDI Co. and SK On Co. — have promised 40 trillion won ($31 billion) in domestic investments with their local suppliers.