Geumyang to Play Key Role as Base Company for K-Battery Expansion in the US and Gulf Region

Chairman Ryu Kwang-ji of Geumyang, who signed an agreement last December with Saudi GCC LAB for the supply of ESS 4695 cylindrical battery modules, maintenance contracts, and the establishment of a joint venture. Photo by Geumyang

Geumyang (Chairman Ryu Gwang-ji) announced on the 3rd that it will set up the 'Geumyang Global Marketing Promotion Hall' at 'InterBattery 2025,' held at COEX, Seoul from March 5 to 7, and conduct business partnership consultations for domestic technology companies in the ESS (Energy Storage System), UPS (Uninterruptible Power Supply), and PACK SYSTEM sectors to jointly enter the U.S. and Gulf regions. Having successfully entered the U.S. and Gulf regions including Saudi Arabia last year, Geumyang plans to establish a 'K-Battery Business Network' to efficiently execute related contracts.

Through this partnership consultation, Geumyang intends to discuss sharing its global order status in the U.S., Saudi Arabia, and other markets, technological cooperation for joint market entry, and cooperation plans for further market development. Technology companies wishing to consult can freely visit the Geumyang Promotion Hall and participate in discussions.

Battery manufacturer Geumyang secured a battery supply contract worth 2.3 trillion KRW with U.S. Nanotech Energy in September last year, followed by achievements in December, including supply and maintenance contracts for 4,695 cylindrical ESS battery modules with Saudi GCC (Gulf Cooperation Council) LAB and agreements on establishing a joint venture.

In a global secondary battery market contraction caused by the electric vehicle chasm, Geumyang plans to leverage the advantages of its versatile and compatible cylindrical batteries and contracts in the U.S. and Saudi Arabia to build a global entry cooperation system for the K-battery industry. This system aims to maximize synergy effects through technical alliances and strategic cooperation with excellent domestic ESS and UPS companies.

Additionally, Geumyang is preparing a phased master plan to maximize corporate value by playing the role of a K-battery global hub company and seeking technological cooperation to implement this role.

On September 19 last year, Geumyang signed a six-year distribution supply contract worth 2.3 trillion KRW for cylindrical batteries with U.S. Nanotech Energy, and on December 4, it received a purchase order for confirmed quantities in 2025 according to a phased ordering plan. According to this purchase order, Nanotech Energy will apply Geumyang's versatile and economical cylindrical batteries to ESS and UPS sectors with continuous growth potential and supply them to related U.S. agencies and defense contractors.

According to the global market research firm Intellectual Market Insights, the global UPS market size is expected to reach $15.65 billion (approximately 21.57 trillion KRW) by 2028, and Data Bridge Market Research analyzes that the UPS market in North America will record a compound annual growth rate (CAGR) of 7.90% until 2030.

While Geumyang's collaboration with U.S. Nanotech Energy focuses on the UPS sector, its cooperation with Saudi GCC LAB centers on the ESS sector, linked to EV battery packs and UPS.

Saudi GCC LAB, which has a technical partnership and supply contract with Geumyang, is a research company established by Aramco's subsidiary with investments from the PIF sovereign wealth fund and SEC (Saudi Electricity Company). Under active support from Saudi government agencies, it operates the world's largest energy research complex in Dammam, Saudi Arabia, established in 2015. This complex covers 170,000 square meters with an investment of 1 billion Saudi Riyals and provides testing, inspection, and certification (TIC) services along with technical engineering consulting.

Geumyang aims to jointly respond to current and future eco-friendly energy development projects such as ESS, UPS, EV, and drone applications by building advanced battery packaging solutions to meet the increasing demand for high-quality battery packs in the Gulf region, including Saudi Arabia, through GCC LAB. Accordingly, Geumyang has agreed with GCC LAB to design, construct, and establish a fully automated battery pack manufacturing plant in Saudi Arabia and is currently pursuing this project.

Based on contracts with U.S. Nanotech Energy and Saudi GCC LAB, Geumyang expects to contribute to the growth of the K-battery industry by strengthening mutual competitiveness through global market joint entry via technical and strategic cooperation with domestic companies possessing technological capabilities in ESS, UPS, and pack systems where its batteries are installed.

Furthermore, Geumyang is actively seeking cooperation with domestic pack companies to target the electric two-wheeler markets in Indonesia, India, and Southeast Asia, which are currently thriving. The electric scooter market is rapidly growing worldwide and is recognized as a sustainable mobility solution. According to the global electric scooter market report published by Meticulous Research, the global electric scooter market is expected to grow at a CAGR of 21.6% from 2024 to 2031, reaching $408.1 billion (approximately 591 trillion KRW) by 2031. In terms of volume, it is predicted to reach 298.5 million units by 2031 with a CAGR of 18.1% during the forecast period.

Geumyang expressed its determination to contribute to national growth and development as a K-battery industry global hub company that overcomes crises through collective strength by actively responding to the global battery market trends and the contraction of the global secondary battery market caused by the electric vehicle chasm, while exploring new growth paths in the high-growth and scalable ESS, UPS, and e-SCOOTER sectors.