LS Materials to build $56 million battery parts plant in Gumi

Industry

Published: 30 Jan. 2024, 16:56

LS Materials to build $56 million battery parts plant in Gumi

Representatives of LS Materials and the Gumi city government take a photo after signing an agreement to build a battery parts factory in Gumi, North Gyeongsang. [LS MATERIALS]

LS Materials will invest 75 billion won ($56 million) to build a battery parts factory in Gumi, North Gyeongsang.

Haimk, a subsidiary of LS Materials, on Tuesday signed a memorandum of understanding (MOU) with the Gumi city government to spend 75 billion won to build an aluminum parts factory for EVs.

Aluminum parts are major materials for making battery cases. Haimk is a joint venture between LS Materials and Australia-based Hammerer Aluminum Industries to provide aluminum battery housing cases to various European automakers including BMW.

"Demand for aluminum parts is on the surge as such materials have become important to make EVs lighter," said Hong Young-ho, CEO of LS Materials. "LS will expand its portfolio of aluminum materials."

LS Materials is also developing a lithium-ion capacitor, which the company says will fuse the advantages of lithium-ion batteries with those of ultracapacitors. The upcoming product aims to have both the high energy density that characterizes lithium-ion batteries and the long battery span deriving from the ultracapacitor.

Production is set for the fourth quarter of 2025.

LS Materials went public on the Kosdaq on Dec. 12, with the starting price set for 19,410 won.

It closed at 31,200 won on Tuesday, up 9.3 percent from the previous trading day.

BY SARAH CHEA [chea.sarah@joongang.co.kr]