[Asia Economy Reporter Park Hyungsoo] DIENT is showing strong performance. This is interpreted as growing expectations for growth as it commercializes laser notching equipment, a core device in the secondary battery manufacturing process.
As of 10:16 AM on the 8th, DIENT is trading at 9,750 KRW, up 15.66% from the previous day.
DIENT has entered the secondary battery equipment business, which is gaining attention alongside electric vehicles. The secondary battery equipment business is a new growth engine, expected to expand through research and development of various core equipment and strengthen the competitiveness of the secondary battery equipment group through synergy among affiliates.
Mirae Asset Securities forecasted that DIENT's profitability will improve due to the specification upgrade of cathode laser notching. LG Energy Solution's press notching equipment currently has about 120 units across 60 lines, and if replacement demand arises, laser notching equipment is expected to be needed. It is analyzed that LG Energy Solution will begin large-scale equipment orders in earnest starting with the Tennessee volume orders in the second half of this year. Laser notching equipment has advantages over press notching in terms of responsiveness to design values and yield response.
Since cathode requires higher technical skills compared to anode, DIENT can also respond to anode laser notching by simply expanding production capacity. Sales are expected to grow significantly at the time of adopting anode laser.
As LG Energy Solution increases its overseas battery production bases, it is expanding the application of laser notching equipment. Notching is the process of cutting and trimming cathode and anode plates, made through electrode processes, to appropriate lengths. LG Energy Solution has pilot-introduced laser notching equipment at its domestic Ochang plant. It will begin full-scale use starting from Ultium Cells' U.S. Plant 1 (Ohio), a joint venture with General Motors (GM).
LG Energy Solution is also reportedly proceeding as planned with its plan to build a battery plant in Arizona, U.S., investing 1.7 trillion KRW.
According to the business community on the 7th, LG Energy Solution is reportedly reviewing the plan to proceed with the construction of a standalone plant in Arizona as originally planned. It is expected to disclose related information as early as the end of this month or next month.
LG Energy Solution is considering resuming the plan to build a new cylindrical battery plant with an annual capacity of 11 GWh in Queen Creek, Arizona, investing 1.7 trillion KRW, following the U.S. government's implementation of the Inflation Reduction Act (IRA).
Kim Hyunsoo, a researcher at Hana Financial Investment, said in a recent report, "LG Energy Solution is reportedly reviewing the plan to establish the plant as originally planned, considering the Arizona state government's active construction requests and policy support."
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