A medium-sized domestic battery maker and a power equipment manufacturer will establish a joint battery plant to target the Middle Eastern nuclear power plant market. Enertech International (hereafter Enertech) and Ewha Technologies Information plan to build a battery factory for Uninterruptible Power Supply (UPS) that uses the power saved and stored, in case when nuclear power plants in the Middle East are shut down, to accelerate their expansion into the Middle Eastern market. When the plant construction is completed, Enertech and Ewha Technologies Information plan to speed up their battery business in Saudi Arabia and the nuclear power plant market in the Middle East.
On June 3, it was revealed that Enertech and Ewha Technologies Information are executing the construction of the first battery pack joint factory in Suwon, Gyeonggi-do. The two companies plan to establish a battery joint venture (JV) this year and secure battery pack production capacity to enter the Middle East nuclear power plant market through by building a battery pack plant. The battery pack is the final finished product for batteries supplied to nuclear power plants in the Middle East. Enertech and Ewha Technologies Information plan to supply UPS for nuclear power, which is a type of mid- to large-sized energy storage system (ESS). As an emergency power supply that stores and takes out power when needed, UPSprevents disruption to operation due to the sudden power outage of production lines of large industrial companies such as nuclear power plants.
When Enertech’s Chungju headquarters supplies battery cells, the Suwon plant collects cells to make 'modules,' combines several of these modules, and supplies battery packs. Ewha Technologies Information and Enertech will further expand the scope of cooperation by building a factory. The long-term goal is to supply battery packs to nuclear power plants in the Middle East, starting with Saudi Arabia as well as to join forces throughout the battery value chain to target the nuclear power plant market.
This is the first time that the two companies have decided to launch a joint battery business. Ewha Technologies Information has been supplying power converters (PCS) for core UPS parts to the United Arab Emirates (UAE) while procuring UPS batteries from Samsung SDI and LG Energy Solutions. However, the has company decided to directly build a battery pack factory and target the nuclear power plant market due to churns in product supply and demand. Enertech is specialized in mid- to large-sized battery manufacturing. Since its major shareholder is the world's largest Russian nuclear power plant company, Enertech is promoting the main ESS and electric vehicle battery businessesbased on synergy from the nuclear power plant business.
The two companies plan to establish a strategic relationship to supply batteries for nuclear power plants in the Middle East by leveraging this battery plant construction as an opportunity. UPS is required to prevent power cuts and data loss in large industrial facilities such as semiconductor factories and data centers. The two firms’ strategy is to actively target not only nuclear power plant markets in the Middle East but also large industries. An official from the two companies said, "We will explore new opportunities in the Middle East nuclear power plant market through the joint construction of a battery factory between specialized domestic manufacturers."
Staff reporter Ji-woong Kimjw0316@etnews.com