SK Innovation has added Hana Technology as a new supplier of battery packaging equipment that will be used by battery maker SK On, TheElec has learned.
Hana Technology’s first order will be for packaging equipment that will be used in SK On’s factory at Yancheng, China, sources said.
Hana Technology will be competing with existing packaging equipment supplier Mplus to win orders, which SK On is expected to give 300 billion worth of in 2022.
Packaging equipment is used in the assembly of pouch batteries. It is done right after tab welding during the manufacture of batteries. Battery materials are packaged inside a pouch film.
SK On does tab welding and packaging processes within one line so it procures needed equipment together.
Tab welding and packaging equipment together cost over 10 billion won. The processes take up 80 meters of a battery production line.
Mplus has previously supplied all equipment used in the assembly process in turn-key orders.
But since Youil Energy Tech and Woowon Technology began supplying equipment to SK On as well, Mplus has been limited to supplying tab welding and packaging equipment, sources said.
Hana Technology entering the supply chain puts further pressure on Mplus to win orders to maintain revenue from SK On, its major customer, they said.
Hana Technology and Mplus will likely start competing for equipment orders to be placed at the end of this month for SK On’s factory in Ivancaa, Hungary. SK On is expected to place further orders for equipment to be used in Yancheng and the planned factory in the US by Blue Oval SK, SK On’s joint venture with Ford.