[Click eStock] "JSTEC, Direct Beneficiary of 50GWh Secondary Battery Cell Factory Expansion"

Hanyang Securities analyzed on the 23rd that JaesTech will directly benefit from the expansion of a 50GWh battery cell factory in India by the US cell maker startup IBC.

Lee Jun-seok, a researcher at JaesTech, stated in a report on the same day, "According to foreign media, IBC has closed a Series A funding round worth $35 million and is preparing for a second funding round worth $70 million," adding, "IBC plans to expand a secondary battery cell factory with a capacity of 50GWh in India by 2033."

India has a high population density relative to its area, with more than 50% of its 3.5 million electric vehicles being electric two-wheelers. The penetration rate of electric vehicles in India is gradually increasing, so IBC's investment is interpreted as an expansion of a secondary battery cell factory for two-wheelers and three-wheelers. JaesTech is expected to exclusively establish the automation process solution within the factory during this expansion.

Researcher Lee Jun-seok explained, "JaesTech is the second-largest shareholder holding 20% of IBC's shares and signed an automation process solution contract worth about 50 billion KRW last year," adding, "The production cost of the automation process solution for the Indian factory is estimated at about 200 billion KRW per 1GWh, and it plans to start with 0.5GWh (100 billion KRW) this year and build 1.5GWh (300 billion KRW) next year."

He further stated, "JaesTech signed an agreement with a domestic cell maker last year and will supply automated unmanned logistics robots AGV used in secondary battery processes starting this year," adding, "The initial volume of 20 billion KRW is expected to be mostly reflected this year, and there is high anticipation for additional secondary volume orders."

He continued, "Based on IBC's expansion and AGV orders, JaesTech has momentum in both the secondary battery sector and the robotics sector," adding, "Considering the increase in order amounts due to future expansion plans, the current market capitalization of 161.1 billion KRW is judged to be significantly undervalued."