Amid an Investment Boom
Korean battery production equipment companies are attracting attention from battery manufacturers around the world, who are expanding their production capacity in line with the rapid growth of the electric vehicle market.
CATL in China recently had a discussion with a Korean equipment maker. The Chinese battery maker is ranked first in the global battery market. “When CATL set up its first production line, Korean companies supplied equipment to it,” said an industry insider. But the Chinese company changed its equipment suppliers to Chinese companies due to the THAAD issues and payment-related risk. “CATL is sending inquiries to Korean companies these days as Chinese suppliers have a quality issue,” he said.
BYD and CALB are also contacting Korean equipment manufacturers. It means that they are looking for alternatives to equipment made by their Chinese vendors.
It goes the same for Sweden’s Northvolt, Europe’s largest battery maker. The company put a lot of Chinese-made facilities into its first production line. Northvolt chose Chinese companies over Korean manufacturers due to an MOU signed with the Chinese companies during a pilot manufacturing facility construction process. However, it changed the main equipment maker to a Korean company starting from the second production line as it suffered a setback in improving yields.
Britishvolt of the U.K. and ACC and Verkor of France visited Korea several times and negotiated equipment supply with Korean companies and have been signing contracts.
“Korean battery equipment makers have been working with LG, SK and Samsung for more than 10 years,” an industry analyst said. “Therefore, their technological level has advanced a lot. As foreign battery makers use the same equipment as the three major Korean companies, they visit Korea and go on equipment shopping.”