[Asia Economy Reporter Hyungsoo Park] Sungwoo Hitech is showing strong performance. The news that it has been selected as a manufacturer and producer of the battery system assembly (BSA), the battery pack for Hyundai Motor Group, appears to be influencing its stock price.
As of 9:44 AM on the 25th, Sungwoo Hitech is trading at 5,490 KRW, up 12.38% from the previous trading day.
According to Electronic Times, Hyundai Motor Group recently selected first-tier suppliers Carfec Valeo, Sungwoo Hitech, and Webasto Korea as manufacturers and producers of BSA. They will supply optimized battery packs for the next electric vehicle models of Hyundai, Kia, and Genesis respectively. This move aims to accelerate the transformation of existing suppliers, who mainly focus on internal combustion engine vehicles, in line with the transition to the electrification era including electric vehicles.
Hyundai Motor Group had been receiving electric vehicle battery modules and packs produced by its affiliate H Green Power through Hyundai Mobis. However, as the group's electrification lineup and production volume gradually increase, it is known to have set a plan to raise the production share of existing first-tier suppliers to 30%.
Meanwhile, according to major foreign media, the Georgia state government in the United States announced on the 23rd an incentive plan worth 1.8 billion USD (2.358 trillion KRW) for Hyundai Motor, which is building an electric vehicle (EV) factory. The scale of Hyundai’s incentive is 300 million USD (about 400 billion KRW) more than the support promised by the Georgia state government to the American EV startup Rivian.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
