[Asia Economy Reporter Hyungsoo Park] Powernet's stock price is soaring. The news that Tesla plans to completely replace the batteries used in its Standard Range electric vehicles appears to be influencing the stock price. Industry insiders noted that various automakers such as Volkswagen and Ford have recently shown interest in LFP batteries, and it is expected that LFP batteries will establish themselves as a new trend in the electric vehicle market.
As of 10:33 AM on the 21st, Powernet is trading at 6,270 KRW, up 19.66% from the previous day.
According to major foreign media, Tesla plans to use LFP (Lithium Iron Phosphate) batteries instead of NCA (Nickel-Cobalt-Aluminum) batteries going forward. Tesla is expected to manufacture electric vehicles at a relatively lower cost.
Tesla is currently manufacturing electric vehicles equipped with LFP batteries at its Shanghai factory. Electric vehicles with LFP batteries are being sold in China, Europe, and the Asia-Pacific region.
According to Roskill, a market research firm specializing in raw material supply chains, 95% of the world's LFP batteries are produced in China. LFP batteries are mainly produced by Chinese companies CATL and BYD, and Tesla also procures batteries from CATL.
LFP batteries are known to be inexpensive and highly safe because they do not use nickel or cobalt. However, LFP batteries have a lower energy density compared to the NCA type, making them less suitable for long-distance driving.
Earlier, Powernet obtained international certification for lithium iron phosphate batteries for the cylindrical lithium iron phosphate battery model from China's CEL in 2019. Powernet is a developer and manufacturer of power conversion devices, specifically SMPS (Switching Mode Power Supply). By applying its existing power supply products, the company is diversifying its business through research and development for new businesses such as BMS and battery packs for electric vehicles, golf carts, and electric kickboards. The new BMS and battery pack business, which has been in preparation since 2019, is expected to show visible sales starting around 2023 after an additional 2 to 3 years of testing. Considering the growth potential of its existing cash cow business and the product expansion into new markets such as BMS, ESS, and 5G, Powernet is securing mid- to long-term growth momentum.
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