Key South Korea-based global electric vehicle battery suppliers are facing a skills shortage that could slow the race towards greener transport, Reuters reported on Monday, citing the companies.
What Happened: The three major battery suppliers — LG Energy Solution, SK On, and Samsung SDI Co Ltd — together serve a third of the global electric vehicle market and are struggling to find enough research and engineering specialists to work for them amid the high demand.
See Also: Elon Musk Says Batteries Will Be As Crucial To Transport As Oil Is Today
The three suppliers are among the top six global battery makers and count Tesla Inc TSLA, Volkswagen Ag VWAGY and Ford Motor Co F as key clients.
The suppliers continue to face “growing demand” from big automakers but are unable to find enough technicians with the required training to keep advancing cutting-edge technology such as solid-state batteries, Reuters reported.
Why It Matters: South Korea is short of almost 3,000 graduate degree-level positions in areas such as research and design, the report noted, citing data from the Korea Battery Industry Association. The global battery market is expected to triple in size to almost $90 billion by 2025, as per the report.
An estimate by the EU's European Battery Alliance planning group says 800,000 new workers are needed by 2025 for “re-/up-skilling" related works, Reuters noted.
Industry executives are ramping up hiring from overseas as they look at the United States for recruiting events.
Price Action: Tesla shares closed 0.81% higher at $781.53 on Monday.
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