[Featured Stock] Deokyang Industry Expected to 'Indirectly Benefit' from US Lithium Metal Battery Production

On the afternoon of the 23rd, Deokyang Industry's stock price showed strong performance. This is attributed to expectations that Deokyang Industry could indirectly benefit as SolidEnergy Systems (SES), a next-generation lithium metal battery company, begins lithium metal battery (LMB) production in Chungju, Chungbuk, with an investment of 195.6 billion KRW starting this year.

As of 3:23 PM on the same day, Deokyang Industry's stock price was trading at 3,305 KRW, up 18.04% compared to the previous trading day. During the session, it surged up to 3,445 KRW.

SES signed an investment agreement on the 15th of last month with Chungbuk Province and Chungju City to invest 150 million USD (195.6 billion KRW) over five years. They plan to build a 4,958㎡ research and manufacturing facility on an 8,000㎡ site in the Chungju Megapolis Industrial Complex. The Chungju plant is scheduled to start operations in September, and SES aims to commercialize lithium metal batteries starting in 2025. Lithium metal batteries, known as semi-solid batteries, are an intermediate form between conventional liquid electrolyte lithium-ion batteries and all-solid-state batteries. By applying metal materials instead of graphite to the anode, they offer approximately 30% longer driving range than lithium-ion batteries and can charge up to 90% of battery capacity in just 12 minutes. Recently, SES succeeded in developing LMB prototypes and secured joint research contracts and large-scale investment support from domestic and international major companies. Hyundai Motor Company invested 100 million USD, and SK is SES's second-largest shareholder.

Deokyang Industry is a partner company supplying key components for electric vehicles to Hyundai Motor Company. It has signed and is supplying a cockpit module production contract worth 1.6 trillion KRW over six years. Earlier, it was also reported that Hyundai officially selected Deokyang Industry as a battery system assembly (BSA) partner. Consequently, expectations are rising that Deokyang Industry will indirectly benefit when SES begins mass production of lithium metal batteries.