DA Technology Secures 25.5 Billion KRW Order for European Secondary Battery Equipment

DA Technology's cumulative order amount in April has surpassed 70% of last year's sales, signaling a positive outlook for this year's performance growth.

DA Technology announced on the 27th that it has signed a contract to supply secondary battery assembly process manufacturing equipment worth 25.5 billion KRW to a European battery manufacturer.

The contract period is from this month until September 2024, and the equipment supplied to Europe is expected to be applied to the secondary battery assembly line. Although the contracting party has withheld disclosure due to confidentiality agreements, the company explained that this is an additional order following last year's development equipment and mass production line orders.

A company representative said, "With the growth of the global electric vehicle market and the implementation of the US Inflation Reduction Act (IRA), battery manufacturers are aggressively investing in new line expansions, leading to an increasing trend in secondary battery equipment orders. We plan to secure additional orders and expand our entry into the European market through continuous collaboration with European battery companies."

The performance outlook for this year is also bright. Following an order backlog of 100 billion KRW at the end of last year, the company continues to receive orders for secondary battery equipment this year. The cumulative amount of new orders as of April this year is approximately 38 billion KRW, which accounts for 71% of last year's sales (53.2 billion KRW). Since it usually takes about six months from order receipt to delivery, orders in the first half of the year are expected to be reflected in the second half's performance.

A company representative explained, "Following last year's large-scale orders, stable order expansion is expected this year as well. We have proactively pursued production capacity (CAPA) expansion, so CAPA is expected to more than double this year. We plan to create meaningful performance growth through additional order acquisition driven by the global factory expansion of domestic and international battery companies."

He added, "According to the US IRA guidelines, to receive electric vehicle tax credits, battery components manufactured and assembled in North America must be used. Therefore, direct and indirect benefits are expected for domestic battery equipment companies. We will expand our market responsiveness by conducting research and development on next-generation battery-related equipment."