DA Technology is on the rise ahead of the announcement of the European secondary battery-related legislation.
As of 1:48 PM on the 8th, DA Technology is trading at 3,620 KRW, up 6.78% compared to the previous trading day.
This upward trend is attributed to the high growth potential of the used battery market and expectations for the draft of the Critical Raw Materials Act (CRMA) to be announced by Europe on the 14th. According to Reuters, the CRMA draft to be announced by the EU Commission focuses on increasing the procurement ratio of key raw materials within the region to reduce dependency risks on China and Russia for battery-critical raw materials such as lithium, cobalt, and rare earth elements.
DA Technology, a supplier of secondary battery automation equipment, has been promoting the used battery recycling business since 2021. The used battery market is mainly divided into the reuse market and the recycling market, with the used battery recycling market consisting of battery disassembly and raw material extraction businesses. DA Technology is developing automated system technology that automatically disassembles and separates used battery packs and modules.
Kim Hak-jun, a researcher at Kiwoom Securities, stated, "Interest in securing materials necessary for manufacturing cathode materials and others seems to be increasing. Since there are no mineral deposits domestically and overseas mineral resource investments take a long time, there is growing interest in securing materials through used battery recycling, so it is necessary to pay attention to related companies."
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