Battery equipment maker Nsys said on Wednesday that it has acquired a 14.13% stake in fellow battery equipment maker Kapjin for 10.05 billion won.
The purchase makes Nsys Kapjin’s second-largest shareholder.
While Nsys’ main revenue source is inspection equipment for the electrode process during battery production, Kapjin’s is formation equipment in which assembled battery cells are charged and discharged to bring them to life.
Nsys’ main customer is LG Energy Solution, while Kapjin supplies its equipment mostly to SK On. Kapjin also supplies its kits to Samsung SDI, LG Energy Solution as well as Chinese battery makers such as BYD.
Nsys could be looking to form a joint venture with another battery logistics equipment maker at a later date to form a complete portfolio of production equipment needed for battery production, people familiar with the matter said.
The company will be competing now directly with compatriot Wonik PNE, which has been acquiring various battery equipment makers to also offer a full portfolio of production equipment, they said.
Wonik PNE’s main product is formation equipment, which means it will be competing directly with Kapjin for orders, they added.
Kapjin, meanwhile, has been closely collaborating with Hana Technology, sharing orders together.
It remains to be seen how Nsys and Hana Technology will react to each other following the acquisition of shares in Kapjin, the people also said.