LG Energy Solution was facing problems in applying its new battery production technique, TheElec has learned.
This was due to the laser notching equipment needed for process likely performing less well than expected, people familiar with the matter said.
Due to the issue, LG Energy Solution swapped some of its laser notching equipment at its factory in Nanjing with press notching equipment.
DE&T has been the sole supplier of laser notching equipment to LG Energy Solution.
Due to the swap however, DE&T had to procure pressing notching equipment from another company to supply with LG Energy Solution.
LG Energy Solution intended to apply laser notching to save cost and increase productivity in its battery production.
Press notching requires the mold to be changed periodically which burdens cost.
The production line also needs to be halted for the swap.
Laser equipment, though their unit price are higher than those for press notching, doesn’t require these processes.
LG Energy Solution’s return to press notching will likely cause uncertainty for DE&T’s future sales.
Samsung SDI, which had also applied laser notching in its production, had procured the equipment for Philoptics previously.
But the company changed the supplier to PNT, which it has given orders for new laser equipment to, when it changed its production technique.
DE&T is a subsidiary of APS Holdings. It has previously focused on display production equipment prior to supplying battery production kits to LG Energy Solution.
During the first quarter, the firm recorded 12.4 billion won in sales, 53% of which came from sales of battery equipment.