JASTECH will establish its first manufacturing base for EV battery components in Cheonan, South Chungcheong Province. It is securing production capacity for core battery components in response to the demand for EV batteries.
JASTECH plans to build a production facility for core EV battery components, such as battery can cases and protective devices such as Cap Ass’y, at the Seonghwan plant in Cheonan by the end of this year. It will wrap up its investment plan soon and start investing in new facilities.
JASTECH operates manufacturing plants for semiconductor and display manufacturing equipment in Asan and Seonghwan, Cheonan. It also produces semiconductor cleaning equipment, plating equipment, display bonding equipment, and cutting equipment. Semiconductor and display equipment account for 50% of its total sales. The company currently has a backlog of orders worth around 90 billion won. An official at JASTECH said, “We have had an interest in the battery market since 2013 and have been preparing to get involved in related businesses,” adding, “We plan to respond to the demand for battery components and strengthen our entry into the global EV battery market with our Seonghwan plant.”
JASTECH is actively responding to the demand for EV batteries with its business site in Seonghwan. The battery components industry desperately needs investments for global EV battery facilities in order to expand production capacity. LG Energy Solution, Samsung SDI, and SK On are securing component suppliers and pursuing for new expansion investments for prismatic and cylindrical batteries in Korea. Global automakers are also preparing to produce their own prismatic and cylindrical batteries, so demand for components is highly likely to increase.
JASTECH is expected to respond to the new demand by establishing a production line for cases and Cap Ass’y that protects electrodes, which are core materials for prismatic and cylindrical batteries.
It is also strengthening battery component development. It acquired a 51% stake in SangaPS for 1.4 billion won on the 1st. SangaPS is involved in battery-related businesses. The acquisition of majority stake in SangaPS is predicted to be the start of JASTECH’s components product development and facility investments.
Shinheung SEC, Sangsin EDP, and Bumchun Precision are engaged in the domestic components business. JASTECH is focusing on the demand for EV batteries by investing in facilities for prismatic and cylindrical cases and Cap Ass’y at its Seonghwan plant. The company plans to expand its business portfolio in response to the growth of the EV battery market.
By staff reporter Ji-woong Kim (jw0316@etnews.com)