Amogreentech, World's First Technology Electric Vehicle Parts Supplier... Hidden Supporter of Tesla Syndrome

Tesla Market Cap Surpasses $1 Trillion... Electric Vehicle Entry Boosts Rental Car Market
US Electric Vehicle Share Only 4.5%, Adoption Expected to Accelerate
AmoGreenTech Commercializes Nano Powder Core First in the World... Tesla Major Customer

[Asia Economy Reporter Hyungsoo Park] Amogreentech's stock price has been on a steep upward curve since the beginning of this month. As Tesla, the American electric vehicle company led by Elon Musk, joined the prestigious 1 trillion dollar club symbolizing the world's top big tech companies, attention is also focusing on Amogreentech's technological capabilities. Tesla's entry into the 1 trillion dollar club as the first in the automotive industry has increased the value of the technology used in supplying Tesla parts. In particular, by applying the world's first developed technology to Tesla electric vehicles, Amogreentech is expected to strengthen its position in the rapidly growing electric vehicle market.

According to the financial investment industry on the 26th, Amogreentech's stock price has risen about 30% this month. It reached an all-time high of 18,000 KRW during trading the previous day. Its market capitalization is approaching 300 billion KRW.

The background of Amogreentech's stock price increase appears to be linked to Tesla's growth. As Tesla grows rapidly, expectations are spreading that Amogreentech's position in the electric vehicle market will expand.

Researcher Eunyoung Lim of Samsung Securities said, "Tesla secured rental car customers ahead of the opening of its Texas and Berlin factories in November," adding, "Hertz's moves are expected to influence other rental car companies as well."

She continued, "The annual demand in the U.S. rental car market is about 1.5 to 2 million units," adding, "For Tesla, this represents a new market opening."

She emphasized, "As of September, the share of electric vehicles in the U.S. is only 4.5%," noting, "It is still in the early stages compared to Europe and China, where the share has already exceeded 20%."

The introduction of electric vehicles by rental car companies is accelerating consumer experience, and with the operation of new factories by Tesla and Rivian, the share of electric vehicles in the U.S. is expected to increase rapidly next year.

Amogreentech developed the country's first and the world's third high-efficiency magnetic material through continuous research and development. High-efficiency magnetic materials are considered key components that minimize energy loss and improve power efficiency in electric vehicles and renewable energy fields. They are also used as core components in smart meters, which are essential to smart grids for sensing electricity consumption.

Amogreentech was the first in the world to commercialize a nano powder core using amorphous ribbons. Due to the high saturation magnetic flux density and high resistivity of amorphous materials, it has excellent core loss characteristics, making it a key component used in electrical parts such as inductors to suppress rapid current changes and improve power efficiency.

The Powder Core has enhanced insulation characteristics through nano powder surface treatment technology, resulting in core loss reduced to less than 20% compared to existing products. Through hybridization technology between different powders, formability is improved, allowing control over shapes desired by customers. In the electric vehicle market, Amogreentech's main customer is Tesla. It also supplies power modules for OBC to global automotive electronics companies such as Bourns and Premo, which supply to Valeo. It is currently conducting projects with numerous global automotive electronics companies.

CT is a core component of current sensors that enable real-time measurement of electricity usage in smart meters, which are essential to smart grids. Amogreentech implemented high-precision characteristics within an error range of 0.2% by applying nano-crystalline alloy technology and heat treatment technology developed first in Korea. It holds a high market share not only domestically but also in overseas markets including Japan, North America, South America, and Europe. Major smart meter customers include Namjeonsa and Hansan AMS Tech, which lead the domestic market, with a market share of about 50%. In the Japanese market, it supplies about 90% of the smart meter demand ordered by Tokyo Electric Power's Osaki Electric and Kansai Electric's Energate, accounting for about 45-50% of the Japanese market. In the Central American market, it supplies through IUSA (GE), holding about 90% of the Mexican market. In the North American market, it is participating in new projects through ITRON and developing high-precision CTs.

Amogreentech developed CMC, a filter product that removes noise in electric circuits. It realizes high permeability and excellent attenuation characteristics. As the types of frequencies used in devices increase, demand for Amogreentech's products with superior attenuation characteristics is rising. Major customers include Tesla, LEAR, and Hyundai Mobis, the top two companies in the EV market. In the renewable energy sector such as solar power and ESS, customers include Germany's SMA and the U.S.'s Tesla Energy. Notably, SMA is the leading company in the global solar inverter market.

Researcher Jongwook Lee of Samsung Securities explained, "Overseas sales of ESS business using lithium iron phosphate batteries are increasing," adding, "Related sales are expected to grow from about 12 billion KRW last year to around 50 billion KRW in 2021."

He predicted that backup battery sales for European wind power companies, which have become major ESS customers since last year, will continue to grow until 2023. He also expects orders for ESS for overseas communication base stations and batteries for electric locomotives. He judged that another stepwise growth is expected next year.

He highlighted, "The recovery of magnetic component sales mainly supplied for high-performance electric vehicles stands out," emphasizing, "For existing customers, the sales scope has expanded not only to automobiles but also to charging stations."