Gangwon Energy Invests 8 Billion KRW to Accelerate Hydroxide Lithium Material Business of Subsidiary Gangwon E Solution

[Asia Economy Reporter Jang Hyowon] Gangwon Energy announced on the 10th that it will participate in an 8 billion KRW capital increase of its subsidiary Gangwon E-Solution. This capital increase totals 8 billion KRW, with 4 billion KRW from Gangwon Energy and 4 billion KRW from the largest shareholder Pyeongsan Partners.

Gangwon E-Solution will use the secured funds to actively pursue the processing business of lithium hydroxide, a core material for cathode active materials in secondary batteries. In June, it signed a 39.5 billion KRW investment memorandum of understanding (MOU) with Gyeongsangbuk-do Province and Gyeongju City to build a production plant for lithium hydroxide and cathode additive materials. This capital increase is the first investment out of the 39.5 billion KRW scale. The high-purity lithium hydroxide powder production plant, being constructed on a 11,000-pyeong site with a factory area of 3,600 pyeong, will be completed in September and will be capable of producing 1,000 tons per month.

The lithium hydroxide produced by Gangwon E-Solution is anhydrous lithium hydroxide with extremely low moisture content. By adding a drying process to the existing lithium hydroxide production process, it can meet both the fine nano particle size and moisture content requirements demanded by cathode material companies, its customers. Currently, there are not many domestic companies producing anhydrous lithium hydroxide, so it is expected to secure a competitive advantage in the secondary battery materials market.

Gangwon E-Solution expects its first sales in the new lithium hydroxide material business sector to occur early next year. As the demand for lithium hydroxide is expected to increase with the expansion of electric vehicle adoption, additional facility expansions and the cathode additive business are also being pursued.

A company official stated, “Based on the funds secured through capital increases from the largest shareholder and affiliates, Gangwon E-Solution plans to accelerate its new business by producing not only lithium hydroxide but also anhydrous lithium hydroxide, a core material.” He added, “Since we have already established a lithium powder production plant in cooperation with Gyeongju City, we expect to achieve visible results in the near future.”

He continued, “Gangwon Energy is also focusing on securing orders for key secondary battery cathode equipment such as electric heater dryers,” and added, “By maximizing synergy with its subsidiaries, we will significantly expand the proportion of the secondary battery new business to establish growth momentum.”