Dongwon Systems Enters Cell Pouch Manufacturing for Secondary Batteries with 100 Billion KRW Investment...

[Asia Economy Reporter Lim Hye-seon] Dongwon Systems is entering the cell pouch manufacturing sector for secondary batteries.

On the 19th, Dongwon Systems announced that it plans to complete the construction of a production plant for secondary battery cell pouches within its factory complex located in Jincheon-gun, Chungbuk Province, by the second half of next year.

At 2:30 PM on the same day, Dongwon Systems will sign a Memorandum of Understanding (MOU) with Chungcheongbuk-do Province and Jincheon-gun at the Chungbuk Provincial Office, outlining these plans. Attendees will include Dongwon Systems CEO Jo Jeom-geun, Chungbuk Governor Lee Si-jong, and Jincheon County Mayor Song Gi-seop.

The investment amount is confirmed at 70 billion KRW, with an additional 30 billion KRW under review, totaling up to 100 billion KRW. The new plant will begin operations starting with the expanded production lines, aiming to produce prototypes in 2023, and plans to complete the investment by the second half of 2025 to establish the largest production line in Korea.

Pouch-type batteries are secondary batteries where electrodes or materials in the form of a 'Jelly roll'?electrodes rolled with cathode, anode, and separator materials?or 'Stacking'?electrodes layered?are enclosed in a cell pouch. Compared to conventional cylindrical or prismatic can batteries, pouch-type batteries have higher internal space efficiency, resulting in greater energy storage density. Their flexible exterior allows them to be bent or folded freely, enabling designs tailored to various electronic devices, including electric vehicles.

Based on these advantages, demand for pouch-type batteries has rapidly increased alongside the growth of the electric vehicle market. According to battery market research firm SNE Research, the global market share of electric vehicle pouch batteries rose from 14.4% in 2018 to 27.8% in 2020, nearly doubling.

The quality of the aluminum film used as the raw material is the most critical factor for cell pouches. However, the global market for aluminum films for cell pouches is virtually monopolized by two Japanese manufacturers holding over 90% market share. The market has very high technological barriers in equipment, materials, processes, and quality, making it extremely difficult for new companies to enter.

Dongwon Systems is entering the cell pouch manufacturing field based on over 40 years of comprehensive packaging technology and expertise. The company aims to produce high-quality products as a manufacturer capable of integrated production from aluminum film to cell pouch.

Dongwon Systems is Korea’s leading comprehensive packaging company producing packaging materials for almost all consumer goods, including food, beverages, cosmetics, household items, and electronic devices, such as glass bottles, cans, aluminum, PET, paper, and industrial films. Its aluminum product manufacturing technology boasts world-class competitiveness.

Last year, Dongwon Systems entered the secondary battery components business by expanding its production line for aluminum cathode foil for secondary batteries and acquiring a secondary battery can manufacturer.

Before the signing ceremony, Dongwon Systems CEO Jo Jeom-geun said, “Since setting the secondary battery components industry as a new growth engine last year, we have been sequentially securing producible items according to our initial plan. Moving forward, we will strengthen our competitiveness to elevate the status of Korea’s cutting-edge material technology not only domestically but also in the global secondary battery components market.”

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