KEMTech Signs Formal Contract with Global Battery Company for Prismatic Battery Can Supply

KEMTech announced on July 1 that it has signed a formal contract with a global battery company to supply prismatic battery can products for a U.S. ESS (Energy Storage System) project.

The supply contract is valued at approximately 80 billion KRW, and KEMTech plans to supply prismatic battery can products locally in the United States over a five-year period, from the end of this year through 2030. When sales from this contract begin to be reflected in earnest at the end of this year, the company expects its external growth to accelerate. While the specific contract partner cannot be disclosed due to a confidentiality agreement, the company explained that this is a formal contract following a memorandum of understanding (MOU) signed in June of last year.

In addition, the global battery company, which is the contract partner, is currently pursuing a separate additional project. There is a possibility that the outcome of this project will be determined within a few months. Since the additional project involves the same product and a similar scale as the current supply contract, if it is finalized, KEMTech's total supply volume, including this contract, is expected to expand to over 160 billion KRW.

While the growth of the electric vehicle market has slowed and the chasm phenomenon has persisted, the U.S. ESS market is experiencing rapid growth. This is due to several factors: the expansion of artificial intelligence (AI) and data centers, increased demand for eco-friendly power from major corporations, and a heightened need to secure power grid stability. In particular, efforts to establish a supply chain independent of China are gaining momentum in the United States, and the global battery company involved in this contract is known to have proactively responded to these changes.

A KEMTech representative stated, "We expect this contract to further strengthen the strategic partnership between the two companies," and added, "Looking ahead, there are opportunities for additional supply not only through ESS projects that the global battery company plans to pursue in other U.S. states, but also through electric vehicle battery projects applying various form factors such as prismatic and cylindrical cells."

The representative continued, "Through these efforts, KEMTech will further solidify its business foundation in the U.S. and its position within the global supply chain, thereby securing a basis for mid- to long-term performance growth."