Hansong Neotec Subsidiary Expands Investment to Meet Overseas Secondary Battery Customer Orders

Raised 4 Billion KRW Through Paid-in Capital Increase and CB Issuance
DA Technologies, Partner of Rivian, Invests 2 Billion KRW in CB

[Asia Economy Reporter Hyungsoo Park] Hansong Neotek announced on the 19th that its secondary battery material subsidiary, Shinhwa IT, will expand its secondary battery material manufacturing plant and production facilities. This investment is to respond to the increase in orders from multiple customers, including ‘Enertech International’, ‘Solid Energy Systems’, ‘Enovix’, and ‘Zhongxin Guo An Mengguli (MGL)’, with whom Shinhwa IT recently conducted high-performance lead tab supply negotiations.

Hansong Neotek will participate in Shinhwa IT’s paid-in capital increase by investing 2 billion KRW. After the capital increase, Hansong Neotek’s stake in Shinhwa IT will rise to 63%.

Shinhwa IT will also issue convertible bonds (CB) worth 2 billion KRW. The CBs issued by Shinhwa IT will be acquired by DA Technology.

DA Technology supplies battery assembly process equipment to automakers and Russian battery specialists. For the past 15 years, it has maintained a stable collaborative relationship as a first-tier vendor for LG Energy Solution. It also expects additional orders for Shinhwa IT’s secondary battery materials and equipment.

A Hansong Neotek official explained, "The expansion of secondary battery facilities is scheduled to be completed by the third quarter of this year," adding, "The existing high-performance lead tab production capacity will increase fivefold."

He continued, "We will be able to focus on producing next-generation high-performance lead tabs for electric vehicles (EV) and energy storage systems (ESS)," and said, "This will strengthen the competitiveness of the secondary battery material business and become Hansong Neotek’s second growth engine."

Lead tabs are electrode terminals that connect the cathode and anode to input and output electricity externally, making them essential materials for secondary batteries. They are used in lithium-ion batteries as well as next-generation secondary batteries such as lithium-sulfur, lithium-metal, and all-solid-state batteries.

Hansong Neotek and its subsidiary Shinhwa IT signed a three-party strategic business agreement (MOU) with DA Technology on the 12th to expand their secondary battery business areas, including secondary battery manufacturing technology and material development. As a follow-up, Shinhwa IT attracted investment from DA Technology.