[Asia Economy Reporter Hyungsoo Park] Joil Aluminum is showing strong performance. It appears that there is a movement to re-evaluate the corporate value as a secondary battery material company.
As of 11:15 AM on the 31st, Joil Aluminum is trading at 1,905 KRW, up 5.83% from the previous day.
Joil Aluminum has set a plan to expand the supply volume of cathode foil raw materials for secondary batteries from the existing 5,000 tons to 40,000 tons. Last month, it established a facility investment plan worth 15 billion KRW. This investment is aimed at expanding the supply of secondary battery materials due to the increasing demand for eco-friendly electric vehicles.
Looking at the aluminum foil supply chain, processing companies such as Novelis and Joil Aluminum process aluminum ingots and sell them in the form of strips such as foil and plates. Then companies like DI Dongil, Lotte Aluminum, and Sama Aluminum perform additional processing and sell to battery and food companies.
The background of the large-scale expansion lies in the expanded cooperation with Lotte Aluminum. Lotte Aluminum, which is expanding the production of cathode foil, an essential material for secondary batteries, has been securing raw material supply chains. Recently, Lotte Aluminum signed a Memorandum of Understanding (MOU) with Joil Aluminum, a raw material supplier for cathode foil, to expand the supply of raw materials for battery cathode foil. Joil Aluminum is supplying aluminum strips, which are raw materials reprocessed from aluminum ingots for cathode foil, to Lotte Aluminum. With the signing of the agreement, Lotte Aluminum can stably secure raw materials for expanding its cathode foil business.
Cathode foil supports the cathode active material that determines the capacity and voltage of secondary batteries, while also serving as a pathway for electron movement. Lotte Aluminum, a specialized manufacturer of packaging materials such as aluminum foil, recently reorganized its business portfolio focusing on cathode foil in response to the expansion of the electric vehicle market.
In response to the increasing demand for cathode foil, Lotte Aluminum is also expanding its production capacity. In September last year, it secured an annual production capacity of 11,000 tons through line expansion. It is investing 120 billion KRW to build a factory capable of producing 18,000 tons of secondary battery cathode foil annually in the T?r?kszentmikl?s industrial complex in Hungary. Once completed, Lotte Aluminum's cathode foil production capacity will increase to 29,000 tons per year.
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