Completion in December next year... Production 2-3 times ↑
Signed a 1.5 trillion KRW contract with Ultium Cells recently
Sales increased 3 times compared to last year... 5 years supply
Youl Chon Chemical will invest 83.6 billion KRW to expand an aluminum pouch factory in Poseung, Pyeongtaek, Gyeonggi Province. When completed in December next year, the pouch production will increase two to three times from the current 30 million ㎡.
Youl Chon Chemical recently signed a contract to supply aluminum pouches worth 1.5 trillion KRW to Ultium Cells, a joint venture between LG Energy Solution and General Motors (GM) from the US. The scale of contract is three times the size of last year's sales, and it will be the supply volume for five years from 2023. The aluminum pouch is an exterior material for protecting EV batteries. It serves to protect the battery cells from external shocks or damages.
Youl Chon Chemical developed an aluminum pouch imported from a Japanese company in 2019 and succeeded in supplying the product after performance verification. LG Energy Solution supported the development of medium and large-sized pouches to Youl Chon Chemical, a partner company of LG Energy Solution.
The aluminum pouch market is rapidly growing due to demand for EV batteries. It is expected to increase more than 7 times in one year to 230 million ㎡ by 2023. Domestic battery companies such as LG Energy Solution and SK on are also supporting the localization of pouches while increasing production of pouch-type batteries.
In the global aluminum pouch market, Japanese companies such as DNP and Showa Denko have been showing strong market. In Korea, Youl Chon Chemical and Dongwon Systems are expanding their business from general pouch films to mid-large pouches for EV. Youl Chon Chemical has been mainly engaged in packaging materials for food and household items, such as ramen packaging, but has recently expanded their business to industrial materials such as secondary batteries. They plan to develop not only pouches but also additional materials.
By Staff Reporter Ji-woong Kim (email@example.com)