[Featured Stock] Cellumed Advances Battery Plant Construction in Korea with BYD China... Cooperation Highlighted Upward

Shares of Cellumed are rising on news that BYD is planning to establish an electric vehicle battery factory in South Korea. This is interpreted as highlighting their battery-related partnership.

As of 1:13 PM on the 24th, Cellumed was trading at 3,800 KRW, up 200 KRW (5.56%) from the previous trading day.

According to foreign media on the 23rd (local time), KG Mobility is pushing forward with plans to establish a factory with BYD aiming for mass production of electric vehicle batteries by January 2025.

This is the first time a Chinese battery company is building a factory domestically in collaboration with a Korean automaker. Accordingly, the industry expects that if BYD succeeds in entering the Korean market, it will secure a customer base for lithium iron phosphate (LFP) batteries and achieve the “two birds with one stone” of bypassing the US Inflation Reduction Act (IRA).

If BYD uses South Korea as a production base, it will be possible to circumvent the US IRA. To qualify for IRA subsidies, raw materials must be sourced from countries that have a free trade agreement (FTA) with the United States.

Meanwhile, Cellumed signed a memorandum of understanding (MOU) and a non-disclosure agreement (NDA) with BYD in December last year to cooperate on secondary battery swappable batteries and electric two-wheelers, establishing a close partnership.

Subsequently, they signed a main contract with BYD for product development and exclusive supply of electric two-wheelers and swappable battery packs. The company described it as “a meaningful contract securing global exclusive sales rights.”

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