[Featured Stock] Aluco Highlights Collaboration with LG Energy Solution until 2031... Volkswagen Battery Supply

[Asia Economy Reporter Hyungsoo Park] Aluco is showing strong performance. Interest in Aluco appears to have increased as attention has focused on secondary battery equipment and parts companies following the listing of LG Energy Solution.

As of 2:23 PM on the 13th, Aluco is trading at 4,270 KRW, up 23.59% from the previous day.

Aluco is a manufacturer and seller of aluminum extrusion products. Recently, it has been expanding its sales scale of battery module cases. Battery module cases are parts that protect battery cells for electric vehicles. Aluminum materials with excellent thermal conductivity are mainly used to dissipate heat from the battery cells.

In June last year, Aluco signed a supply contract worth 215.3 billion KRW for Volkswagen MEB battery module cases. The customer is 'LT PRECISION POLAND,' a Polish affiliate of LG Energy Solution. The contract period is until December 2031.

At the time of the contract signing, Aluco introduced that the battery products supplied (battery module cases) will be supplied to the global automaker Volkswagen through LT Precision and LG Energy Solution. Volkswagen MEB battery module cases are key parts to protect the cells of electric vehicle batteries, mainly using aluminum materials with excellent thermal conductivity to dissipate heat from the battery cells. Advanced technologies such as precision extrusion and processing are required.

Battery module cases are produced at Aluco's Vietnam factory and supplied to Poland. Battery parts sales occur through Aluco's subsidiary 'ALK VINA.'

Last year, Aluco raised 32 billion KRW by issuing convertible bonds (CB) and bonds with warrants (BW). The funds were prepared in advance for raw material purchases and support for overseas subsidiaries responsible for producing electric vehicle battery parts.