The First Factory Established in Ulsan Free Economic Zone... Ulsan Free Economic Zone Authority Attracts 121.5 Billion KRW Investment Just 5 Months After Opening

Ulsan City and Ulsan Free Economic Zone Authority Sign MOU with SM Lab Co., Ltd. on 2nd Battery Production on the 11th

Ulsan City Hall exterior view.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] The investment gateway has opened in the Ulsan Free Economic Zone. The first investment attraction has been achieved one year after the launch of the Free Economic Zone.

On the 11th at 3 p.m., Ulsan City, Ulsan Free Economic Zone Authority, and SM Lab Co., Ltd. will sign a memorandum of understanding for investment to expand the secondary battery cathode material production facility at SM Lab's 2nd factory in Samnam-myeon, Ulju-gun.

This is the first MOU since the Ulsan Free Economic Zone was designated and announced on June 11 last year and the Ulsan Free Economic Zone Authority was opened on January 1 this year.

Attending the agreement ceremony are the signatories: Song Cheol-ho, Mayor of Ulsan; Jo Young-shin, Head of Ulsan Free Economic Zone Authority; Jo Jae-pil, CEO of SM Lab; as well as Park Byung-seok, Chairman of the City Council; Lee Yong-hoon, President of UNIST; Lee Si-woo, Chair of the Industry and Construction Committee; Baek Woon-chan, Special Committee Chair of the Free Economic Zone; and City Councilor Yoon Jung-rok.

According to the agreement, SM Lab will invest approximately 121.5 billion KRW by 2022 to expand the 'secondary battery cathode material production facility' in the High-Tech Valley (Phase 1) of Ulju-gun, while Ulsan City and the Ulsan Free Economic Zone Authority will provide administrative support such as permits and approvals.

SM Lab is a company manufacturing 'cathode materials,' one of the key materials for lithium secondary batteries, and was established in 2018 as a startup by Professor Jo Jae-pil of the Department of Energy and Chemical Engineering at Ulsan National Institute of Science and Technology (UNIST).

SM Lab has recently received 64 billion KRW in investment from major domestic venture capital firms and currently operates Factory 1 (50 tons/month) and Factory 2 (550 tons/month). With the additional expansion of Factory 3 (1,200 tons/month), the total monthly production capacity will increase to 1,800 tons.

This expansion of the secondary battery cathode material production facility will broaden the industrial scope of the Ulsan Free Economic Zone, which is centered on the hydrogen industry, and is expected to promote the growth of secondary battery companies in connection with nearby large corporations such as Hyundai Motor Company and Samsung SDI.

Since its opening, the Ulsan Free Economic Zone Authority has been conducting investment attraction activities with customized strategies in response to COVID-19.

Mayor Song Cheol-ho of Ulsan said, "The excitement of the day when the Ulsan Free Economic Zone was designated a year ago comes to mind again," adding, "I am confident that the Ulsan Free Economic Zone will expand from hydrogen to not only secondary batteries but also floating offshore wind power, Northeast Asia oil and gas hub, and nuclear power plant dismantling industries."

Jo Young-shin, Head of the Ulsan Free Economic Zone Authority, said, "Starting with the first investment attraction after the opening, Ulsan will grow into the largest energy-centered city in Northeast Asia, with the Ulsan Free Economic Zone Authority standing tall at its center."

CEO Jo Jae-pil said, "As much as the secondary battery market's growth expectations, SM Lab will also expand production scale through technological innovation and create quality jobs in Ulsan."

This content was produced with the assistance of AI translation services.