Yeosu-Suncheon-Gwangyang battery complex to span 21.29 million square meters

R&D workforce to be developed in partnership with universities and research institutions

The Gwangyang Bay area of South Jeolla Province is set to become a strategic hub for Korea's battery industry, supplying basic raw materials such as lithium and nickel as well as key components for rechargeable batteries.

Most of the Gwangyang Bay area has already been designated a free economic zone. Although Yeosu, Suncheon and Gwangyang are separate administrative units, they border one another — much like Cheonan and Asan — and together have a combined population of roughly 700,000.

According to Suncheon City, the Ministry of Trade, Industry and Energy on Wednesday formally designated the Gwangyang Bay area as a national advanced strategic industry secondary battery specialized complex, following deliberation and approval by the National Advanced Strategic Industry Committee. The complex spans a total of 21.29 million square meters across six industrial parks: Yulchon 1 Industrial Complex, Haeryong General Industrial Complex, Sepung General Industrial Complex, Hwanggeum General Industrial Complex, Iksin General Industrial Complex and the Dongho waterfront section of Gwangyang National Industrial Complex.

The designation comes three years after South Jeolla Province passed over a secondary battery bid in the first national advanced strategic industry specialized complex competition in 2023, choosing instead to jointly pursue a semiconductor complex with Gwangju.

A total of 530.3 billion won ($390 million) — comprising 325.5 billion won in central government funds, 174 billion won in local government funds and 30.8 billion won in private investment — will be channeled through 2035 to build an industrial ecosystem covering the full battery value chain, from basic raw materials and key components such as cathode materials to recycling.

As a core hub in the K-battery raw materials and components supply chain, the complex will receive a range of national support measures, including exemptions from preliminary feasibility reviews, central government funding for infrastructure, research and development programs, specialized workforce training and expedited permitting.

Posco Lithium Solution has already committed about 575.1 billion won to build a lithium hydroxide production facility with an annual capacity of 25,000 tons in Haeryong-myeon, Suncheon, and the new designation is expected to further strengthen the city's competitiveness in the secondary battery sector.

Secondary batteries serve as critical enabling technology not only for electric vehicles but also for defense applications — including unmanned systems, drones, robots and military power systems — and the designation is expected to open pathways for convergence between the battery and defense industries.

Suncheon plans to focus on expanding infrastructure at the Yulchon 1 and Haeryong industrial complexes, identifying projects eligible for central government funding, attracting battery materials, components and equipment companies as well as recycling firms, and developing R&D programs and specialized talent pipelines in collaboration with universities and research institutions.

"Building on the Gwangyang Bay area's materials and energy industry base and Suncheon's industrial, talent and research capabilities, we plan to actively promote convergence among advanced industries — including secondary batteries and defense — and step up efforts to attract related companies and research institutions," Mayor Son Hun-mo said.