Korea Zinc’s proprietary nickel sulphate manufacturing technology is used to produce metal chemicals essential to cathodes. Credit: Piotr Swat/Shutterstock.

The South Korean Government has recognised Korea Zinc’s nickel sulphate manufacturing technology as a national strategic technology.

This designation comes after the government expanded the scope of national strategic technologies by amending the Enforcement Decree of the Restriction of Special Taxation Act.

As a result of this change, technologies related to the manufacturing and processing of metal compounds for cathodes are now included in this category.

The company is now eligible for additional benefits such as further tax deductions, supporting its investment in the world’s only all-in-one nickel refinery.

According to Korea Zinc, the tax credit benefits will be applied to income tax or corporate tax starting in 2026, when the all-in-one nickel refinery, requiring an investment of more than 500bn won ($342.9m), begins full-scale operations. This is expected to result in cost savings of up to 90bn won.

Korea Zinc has been striving to have its nickel sulphate manufacturing technology for secondary batteries acknowledged as a national strategic technology since 2023.

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This recognition makes the company eligible for various government benefits.

National strategic technologies are those considered crucial from a diplomatic and security perspective, significantly impacting the national economy and related industries.

The designation follows a thorough evaluation by government agencies including the Ministry of Trade, Industry and Energy, and the Ministry of Economy and Finance.

The National Strategic Technology Promotion Act mandates administrative and financial support from the government and local authorities to enhance the competitiveness of national strategic technologies.

Korea Zinc’s proprietary nickel sulphate manufacturing technology is used to produce metal chemicals essential to cathodes, a key component of secondary batteries.

This technology reduces the domestic battery industry’s reliance on China and strengthens the competitiveness of the secondary battery supply chain.

The absence of smelting facilities for critical battery minerals such as nickel has been a key concern for battery manufacturers and material companies in South Korea.

These companies have expressed the need for government support in developing local smelting infrastructure.

In November last year, Korea Zinc was recognised with national core technology and advanced strategic technology designations for its high-nickel precursor manufacturing technology.

With the national strategic technology designation, Korea Zinc has reinforced its role in the nation’s core industries and strategic sectors.

A Korea Zinc representative stated: “Despite having to fend off the M&A [mergers and acquisitions] 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.”