Battery contract producer JR Energy Solution said on Wednesday that it has started construction of its first factory.
The factory will manufacture the cathode and anode electrodes for its battery customers.
JR Energy Solution will spend 40 billion won initially and 305.6 billion won in total up to 2027 on the factory.
The factory will have an electrode production capacity of 0.5GWh, the company said.
Battery cell and automobile customers will provide their battery design from electrode size to cathode and anode recipes.
JR Energy Solution will use this to handle the mixing and electrode processes and supply the finished reels to its customers.
The mixing and electrode equipment will be supplied by Yunsung F&C and PNT, respectively. JR Energy Solution’s first customers will be LG Energy Solution and Ford.
The company is also planning to manufacture small pouch batteries for specific applications such as for the military.