[BizLeader] Kang Yongju, Vice President of Cellumed, "Entering the Replaceable Secondary Battery Market"

Collaboration with Global No.1 Electric Vehicle Company BYD
Targeting Demand for Replacing 1.37 Million Delivery Riders' Electric Two-Wheelers

[Asia Economy Reporter Jang Hyowon] “With an exclusive contract with China’s BYD, the global number one electric vehicle company, we plan to secure the demand for swappable battery electric two-wheelers from 1.37 million domestic delivery riders first.”

Kang Yongju, Vice President of Cellumed, stated this in an interview with Asia Economy regarding Cellumed’s entry into the swappable secondary battery market, a new business area. Cellumed plans to focus its business on the swappable battery pack market within the secondary battery sector. Existing electric vehicles have integrated batteries, which require a long charging time. To reduce this time, electric vehicle models equipped with swappable batteries have recently been developed in the industry.

Kang Yong-ju, Vice President of Cellumed. / Photo by Cellumed

Vice President Kang said, “There has been an issue in the electric vehicle market about reducing battery charging time, and we plan to drastically reduce charging time through swappable batteries,” adding, “In fact, the government also established standards for swappable batteries for electric two-wheelers last December, so the market size is expected to grow.”

In particular, Cellumed sees significant potential demand for swappable batteries in the delivery motorcycle market and plans to target it intensively. For delivery riders, where time is critical, saving charging time is highly efficient.

As of 2020, there are 2.2 million two-wheelers in South Korea. Of these, approximately 1.37 million are estimated to be delivery motorcycles. The government recommends replacing internal combustion engine motorcycles with eco-friendly electric two-wheelers by 2025. If all 1.37 million are converted to electric two-wheelers, a market worth about 5 to 6 trillion KRW will be formed.

Vice President Kang said, “Last year, domestic electric two-wheeler sales were about 22,000 units, so the market has not yet fully opened,” adding, “Mass production will begin in the second half of this year, starting with sales of around 1 billion KRW this year, growing to 5 to 8 billion KRW next year, and reaching about 300 billion KRW by 2025.”

One of Cellumed’s strengths in the growing domestic electric two-wheeler market is its cooperative relationship with China’s BYD. Earlier this year, Cellumed signed a memorandum of understanding (MOU) with BYD regarding electric two-wheelers and secondary battery batteries.

According to energy market research firm SNE Research, BYD’s global electric vehicle sales reached 1.87 million units last year, surpassing Tesla’s 1.31 million units to rank first. BYD is an electric vehicle company originating from a battery manufacturer, and Cellumed plans to exclusively supply battery solutions with mutually agreed specifications from BYD in South Korea.

Based on this, Cellumed plans to manufacture swappable battery packs domestically and obtain national standard certification. Subsequently, electric two-wheelers equipped with swappable batteries will also be supplied by BYD, with production and sales conducted domestically.

Vice President Kang said, “We have secured technology patents to produce battery packs either through in-house development or external acquisition,” adding, “The main contract with BYD is expected to be signed soon as visa restrictions between Korea and China are easing, with detailed matters such as specification adjustments for standardization to be coordinated.”

He continued, “After securing the domestic electric two-wheeler market, we plan to target Southeast Asian markets such as Indonesia and Vietnam with ‘Made in Korea’ products,” adding, “We will also expand into other mobility markets such as logistics, urban air mobility (UAM), and autonomous ships.”

After securing a cash cow through the secondary battery business, Cellumed plans to strengthen its core bio-medical device business. Cellumed is a bio-medical device specialist company engaged in tissue engineering research and development of demineralized bone matrix (DBM), synthetic polymer knee cartilage (BMG), artificial knee joints, and allograft materials. Due to the nature of bio companies, large research and development expenses are required, making it difficult for companies without performance to proceed with the business.

Vice President Kang said, “The company’s core bio-medical device business and mRNA platform business require large-scale R&D investment, so a stable cash cow is necessary,” adding, “In motorcycle terms, the secondary battery business will serve as the rear wheel power, and bio-medical will be the front wheel driving growth.”