DA Technology Secures Additional Z-Stacking Order with LG Electronics in 11.4 Billion KRW Supply Contract

DA Technology announced on the 25th that it has signed a supply contract worth 11.45 billion KRW for secondary battery assembly process manufacturing equipment with LG Electronics.

This order will be applied to the battery assembly line at LG Energy Solution's factory in China, involving stacking and peripheral equipment. It is an additional supply contract related to Z-stacking following the approximately 50 billion KRW order last December for the Hyundai Motor-LG Energy Solution joint venture in Indonesia. The contract period is from May 25, 2023, to December 31, 2024.

Since the end of March this year, DA Technology has consecutively signed four secondary battery equipment supply contracts over two months. The cumulative order amount so far is about 53 billion KRW, which is 99% of last year's sales (53.2 billion KRW). Considering the tendency for a higher proportion of orders in the second half of the year, the company expects that exceeding last year's orders (approximately 100 billion KRW) this year will be achievable.

DA Technology plans to focus on expanding orders by strengthening market responsiveness. This is because global automakers and battery manufacturers are accelerating the expansion of global production capacity due to recent growth in the electric vehicle market and the implementation of the U.S. Inflation Reduction Act (IRA).

A company official said, “DA Technology has secured competitiveness to proactively respond to market trends based on the establishment of a post-processing equipment value chain applicable to all battery form factors, including cylindrical, pouch, and prismatic types. Thanks to the aggressive investments and new line expansions by domestic and international automakers and battery manufacturers, the demand for battery materials and equipment is expected to continue increasing.”