[Special Stock] Gangwon Energy Expected to Start Full-Scale Production of Anhydrous Lithium Hydroxide... Joining the Secondary Battery Value Chain

[Asia Economy Reporter Hyungsoo Park] Gangwon Energy is showing strong performance. It is being re-evaluated for its corporate value as it prepares a diverse lineup of secondary battery equipment, including electric heater dryers for cathode material processing. Based on equipment such as classifiers, Roll Crushers, and de-ironing machines necessary for cathode material processing, it is expected to enter a full-scale growth phase starting next year. In fact, process engineering orders are held by its subsidiary Gangwon E-Solution, so Value Finder analyzed that synergy through turnkey orders from secondary battery equipment to facilities will be possible.

As of 11:03 AM on the 10th, Gangwon Energy is trading at 9,350 KRW, up 14.3% from the previous day.

Researcher Chungheon Lee of Value Finder explained, "Gangwon Energy acquired Gangwon E-Solution from its parent company Pyeongsan Wintec of the Pyeongsan Group," adding, "Gangwon E-Solution invested in an anhydrous lithium hydroxide production plant for secondary battery materials through a paid-in capital increase of 8 billion KRW."

He continued, "The cumulative import value of lithium hydroxide, a core cathode material, from January to August domestically was 2.12 billion USD, a 460% increase compared to 380 million USD in the same period last year."

Furthermore, he analyzed, "As the price of lithium hydroxide has recently surged, cathode material companies are striving to secure stable supplies of lithium hydroxide," and "Most of the equipment Gangwon Energy provides for secondary battery material processing is used in cathode material factories."

The researcher added, "It is understood that the company expanded into the materials business based on the judgment that it can directly handle everything from design to equipment and facilities through Gangwon E-Solution's resources," explaining, "Anhydrous lithium hydroxide reduces moisture content compared to conventional lithium, decreasing volume by about 60%." He further stated, "It is a material that satisfies the fine nano particle size and moisture content preferred by cathode material companies," and predicted, "Since there are few domestic anhydrous lithium hydroxide producers, there will be sufficient demand for outsourcing." It is estimated that production of anhydrous lithium hydroxide at a scale of 1,000 tons per month is possible.