Samgi Energy Solutions (Samgi EV) is showing strong performance. The news of signing a supply contract for ESS BMS cables with LG Energy Solution appears to be influencing the stock price.
On the morning of the 2nd, Samgi Energy Solutions is trading at 1,834 KRW, up 15.56% from the previous day.
The total order amount is approximately 30 billion KRW, supplying hundreds of thousands of units annually over four years. The supply is scheduled to start from June 2025 to LG Energy Solution. The company explained that the supply contract is significant because it establishes a new revenue model that can lead performance improvement by entering the ESS market, which plays a crucial role in maximizing power grid stability and energy efficiency.
The BMS cable, which connects the battery cell and the Battery Management System (BMS), monitors temperature, voltage, and current in real-time to manage risks such as overheating, overcharging, and overdischarging.
ESS batteries require long cables like Samgi Energy Solutions’ BMS cables due to their large surface area. The ESS BMS cables supplied by Samgi Energy Solutions apply patented new technology, reducing weight by 90% compared to existing products. The volume is also reduced to about 90% of existing products by using insulating film materials. Being flexible, it has the advantage of maximizing space utilization when designing battery modules and packs. The product length can be produced infinitely long according to customer requirements, and the manufacturing process is simplified, providing innovative cost competitiveness.
Gwak Dongsik, head of the Technology Research Institute at Samgi Energy Solutions, said, "The global market size for BMS cables is worth trillions of KRW," adding, "We are currently working on numerous development projects for ESS and completed vehicles, so sales expansion from this will grow even larger."
Samgi Energy Solutions announced at its IPO in February 2023 that it would enter the battery electronic components business to diversify its products. In the March regular shareholders’ meeting, it added related business objectives through amendments to its articles of incorporation. In August 2023, it filed a patent for FF-PCB (Flat Flexible PCB) cables.
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