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SEOUL, South Korea, Jan. 17, 2025 /PRNewswire/ -- Korea Zinc (KRX:010130) announced today that its nickel sulfate manufacturing technology has been designated as "national strategic technology" by the South Korean government.
The government recently expanded the scope of national strategic technologies through amending the Enforcement Decree of the Restriction of Special Taxation Act. This has resulted in including the "manufacturing and processing technologies for metal compounds for cathodes" in the category.
Since 2023, Korea Zinc has been pursuing to have its nickel sulfate manufacturing technology for secondary batteries recognized as national strategic technology. With its inclusion in this category, the company is now eligible for various government benefits.
National strategic technologies refer to technologies deemed strategically important from a diplomatic and security standpoint, with significant impacts on the national economy and related industries. These technologies form the basis for future innovations, such as creating new industries and groundbreaking technologies. The designation is given following a comprehensive evaluation by related government agencies, including the Ministry of Trade, Industry and Energy, and the Ministry of Economy and Finance. The National Strategic Technology Promotion Act mandates that the government and local authorities provide administrative and financial support to secure and enhance competitiveness of national strategic technologies.
This nickel sulfate manufacturing technology, which is one method to manufacture and process metal compounds for cathodes, is a proprietary technology owned by Korea Zinc used to produce metal chemicals essential to cathodes, a key component of secondary batteries. This technology is significant as it reduces the domestic battery industry's reliance on China and lays the foundation for strengthening the competitiveness of the secondary battery supply chain.
Domestic battery manufacturers and material companies have long highlighted the absence of smelting facilities for critical battery minerals within the country as a significant issue. They have urged the government to provide strategic support for establishing smelters for essential minerals, such as nickel, in South Korea.
Previously, in November last year, Korea Zinc received national core technology and national advanced strategic technology designation for its high-nickel precursor manufacturing technology. With the addition of the national strategic technology designation, Korea Zinc has further strengthened its central role in the nation's core industries and strategic sectors.
In particular, with its inclusion in the national strategic technology category, Korea Zinc is now eligible for additional benefits such as further tax deductions. This will support its construction and investment in the world's only all-in-one nickel refinery, which will serve as the hub and forward base for nickel sulfate production.
According to Korea Zinc, the tax credit benefits from the designation as national strategic technology will be applied to income tax or corporate tax starting in 2026, when the all-in-one nickel refinery, which requires a total investment of over KRW 500 billion, begins its full-scale operations. This is expected to result in cost savings of approximately KRW 80 to 90 billion.
A Korea Zinc representative stated, "Despite having to fend off the M&A attempt by MBK and Young Poong over the past four months, Chairman Yun B. Choi, along with the current management and the employees of Korea Zinc, have been working tirelessly to maintain the company's global number one position."
