DSK fails to clinch lamination kit order from Ultium Cells

DSK has failed to supply its lamination equipment to Ultium Cells, the battery making joint venture between LG Energy Solution and General Motors, TheElec has learned.

Instead, Shinjin Mtec and Nain Tech were named the final candidates to supply the kits by LG Energy Solution.

DSK’s pilot equipment had passed the final review, increasing hopes that it will clinch the order.

But the setback has now dented its hopes for a long-term deal.

If it had succeeded in supply the kits for Ultium Cells’ first factory this time around, the firm was positioned to also supply the same kits to the second factory.

The second factory is designed as a copy of the first factory. 

The first factory is being built in Lordstown, Ohio. The building has been completed and LG is placing orders for equipment to put in.

The second factory is planned to be build at Spring Hills in Tennessee. The two factories combined are expected to have a battery production capacity of 70GWh per year.

DSK will now wait for orders by LG for its factories in China and Poland.

As LG is the only battery maker to use the lamination process, it will also be difficult for DSK to supply related kits to other customers.

But as LG was the one who strongly pushed DSK to develop the kits, it is likely that the pair will continue their collaboration going forward.

Lamination kits are used in the production of pouch batteries. They are used to laminate the cathode and anode on top of the separator during production.