South Korea's Small and Medium Business Corporation (SMBC) has signed an agreement with LG Energy Solution to bolster the domestic battery ecosystem. The partnership focuses on stabilizing supply chains for existing partners and funding next-generation battery innovation from startups. A key part of the deal involves helping small and medium enterprises comply with the EU's Carbon Border Adjustment Mechanism (CBAM) through MRV support programs and financing. The agreement creates two main tracks. The first aims to secure existing supply chains by providing policy loans and co-growth network loans to partner companies. The second track, called the Next-Generation Innovation Discovery Track, will run an open innovation program to identify and scale promising battery startups. SMBC will link these startups to policy support for technology verification and follow-up investment. This public-private collaboration is designed to help South Korean battery firms maintain global competitiveness as carbon regulations tighten. By combining SMBC's policy infrastructure with LG Energy Solution's global value chain, the initiative seeks to create a model for supporting both large corporations and smaller suppliers in the low-carbon transition.
