Surging Demand for Battery Components Amid Electric Vehicle Boom... GlobalSM "Supplying Fasteners for Electric Vehicle Batteries"

[Asia Economy Reporter Yoo Hyun-seok] Global SM is known to be supplying fasteners for electric vehicle batteries to major domestic secondary battery companies. As the electric vehicle market grows in earnest, the growth rate of key electric vehicle parts industries, including batteries, is noticeably remarkable, attracting market attention.

According to Global SM on the 26th, Global SM and its parent company Seoul Metal started supplying fasteners for electric vehicle batteries to major domestic secondary battery companies from the second half of last year. From this year, the supply of fasteners for electric vehicle batteries is expected to become more active, using overseas subsidiaries located in China and Europe as bases.

Global SM is the world's largest single-scale manufacturer of fasteners for electronic devices and vehicles. It mainly produces screws, shafts, and other fastening components essential for smartphones, IT electronic devices, and automotive parts. It has local factories in four regions in China, Spain and Romania in Europe, Vietnam, and Malaysia.

The fastener industry has recently seen a significant growth in the front market centered on automobiles, leading to a rapid increase in demand in various fields. However, since the size, shape, and strength required by each demand source differ, mass production of various types is essential, and only a few companies have production capacity and technology above a certain scale for each front market.

According to a report by market research firm Grand View Research, the global industrial fastener market is expected to grow to $110.24 billion (approximately 121.83 trillion KRW) by 2025. Among them, the automotive industry accounts for the largest share, followed by industrial machinery and aerospace industries.

A Global SM official explained, “Fasteners used in electric vehicle batteries require sophisticated technology in terms of materials and specifications,” adding, “Global SM has local factories in major bases in China and Europe where secondary battery companies’ factories are located, enabling timely and smooth supply of parts.”

He continued, “With the growth of the electric vehicle and secondary battery markets, demand for electric vehicle battery parts is also increasing, and from this year, we plan to actively expand the fastener business for electric vehicle batteries.”