KEMTEC Engages in Commercial Negotiations for US ESS Project Main Contract... "Main Contract Within Sight"

KMTech (formerly HiSonic) announced on the 6th that it has begun commercial negotiations for a main contract on a US ESS (Energy Storage System) project with a global battery company.

Over the past two years, KMTech has passed all stages including the development of specialized prismatic secondary battery (Cell) component samples, testing, and production line audits through technical consultations with the global battery company. Based on this, the company expects to sign the main contract soon as it has entered the commercial negotiation phase.

Additionally, to meet the customer's mass production schedule, KMTech plans to establish a secondary battery component factory facility in Tennessee, USA, by September. Since Tennessee and neighboring Georgia host many domestic global battery companies, KMTech intends to strengthen market responsiveness based on geographic proximity.

Recently, preference for prismatic form factors, known for their safety advantages, has been increasing, while the US's strengthened stance against China has effectively restricted Chinese companies' entry into the US market. Furthermore, to avoid the universal tariffs imposed during President Trump's administration, demand is expected to rise for prismatic battery specialized components that can be produced locally in the US. The company explains that this is likely to benefit KMTech.

A company representative stated, “While the secondary battery component industry has grown centered on pouch form factors by major battery companies, and the infrastructure for pouch battery specialized components is well established, the ecosystem for prismatic battery specialized components and equipment is relatively insufficient in terms of diversity, interconnectivity, and competitiveness.”

They continued, “KMTech has already secured reliability for mass production based on differentiated design technology and accumulated manufacturing and mass production experience related to prismatic and cylindrical secondary battery specialized components, such as Can-Cap Assembly. Leveraging product and technological competitiveness along with a favorable market environment, we will expand our market share.”