As Northvolt, a Swedish battery manufacturer, has become a key partner of Volkswagen’s electric vehicle (EV) business and is emerging as a key business to assist the European Union become self-reliant on batteries, South Korea’s battery materials, parts, and equipment industry that is currently working with Northvolt is drawing interest.
Although Northvolt is a fairly new battery manufacturer that was established in 2016, its position in the industry is growing as it is playing a key role in helping the European Union become independent from Asian battery manufacturers.
The company is currently building an EV battery plant in Skelleftea that is a city located north of Sweden. Its goal is to start operating the plant by the end of this year and it is strengthening its cooperation with South Korean battery manufacturing equipment manufacturers.
In fact, a South Korean battery manufacturing equipment manufacturer called CIS is scheduled deliver its electrode manufacturing machines for rechargeable batteries to Northvolt by the end of July next year. CIS and Northvolt signed contract worth $14 million (15.3 billion KRW) in November last year. Electrode manufacturing process is part of the front-end process of rechargeable battery manufacturing process, and CIS is expected to supply its coating machines and roll press machines. A representative for CIS confirmed on Thursday that the company is in a partnership with Northvolt. However, the representative said that the company cannot disclose any information related to additional supply of the company’s machines.
Another South Korean company called Innometry is currently supplying battery testing machines to Northvolkt. Innometry signed a contract with Wuxi Lead Intelligent Equipment regarding supply of X-ray battery testing machines worth around $4.3 million (4.8 billion KRW) in December last year, and these machines will be used for Northvolt’s EV battery plant. Innometry currently makes a machine that automatically inspects for any defect or foreign substance inside of a battery using X-ray. Because the machine is automated and is capable of real-time inspection, it is drawing interest from the industry. It is reported that demands for testing machines from Northvolt are likely to grow depending on the company’s production capacity in rechargeable batteries.
Besides these companies, a company called PNE Solution also signed a contract worth $13 million (14.1 billion KRW) with Northvolk regarding supply of chargers and dischargers that is set to last until the end of September. The company is also expected to supply its “cycler”, which tests battery’s lifespan, for R&D purpose.
Northvolt’s goal is to operate its plant that is currently under construction by the end of this year. As a result, there is a good chance that the company will continue to demand electrode manufacturing machines and testing machines that are required during battery manufacturing process.
The company is also in partnerships with South Korean companies regarding battery materials. For example, Dongjin Semichem is currently preparing to supply anode materials, which are one of four key materials of a rechargeable battery, to Northvolt. To achieve a successful supply of anode materials, Dongjin Semichem is looking into constructing a plant in Sweden by hiring related personnel and looking into different sites in Sweden.
The fact that number of partnerships between Northvolt and South Korean companies is growing indicates that battery materials, parts, and equipment of South Korean companies have been proved by the market. As Northvolt is relatively new, it is looking into gaining grounds on LG Energy Solution, Samsung SDI, and SK Innovation by utilizing machines and materials that they are currently using to manufacture batteries.
It is reported that Northvolt is planning on second investment in Sweden and orders for necessary materials, parts, and equipment that will be used for a joint EV battery plant that the company is going to establish with Volkswagen. As a result, it will be interesting to see whether these moves will lead to more opportunities for South Korea’s battery materials, parts, and equipment industry.
Staff Reporter Yun, Geonil | benyun@etnews.com & Staff Reporter Kim, Jiwoong | jw0316@etnews.com