RF Semi "Targeting Lead-Acid Battery Market with LFP Batteries... Financial Improvement through Physical Division"

RF Semi, which is promoting a new lithium iron phosphate (LFP) battery business, announced its vision to target the global lead-acid battery market with LFP batteries. It also stated plans to improve its financial structure through a physical division.

On the 29th, RF Semi held a corporate briefing at the Federation of Korean Industries building in Yeouido, Seoul, introducing its new 32700 cylindrical LFP battery business.

Hyun Deok-su, head of the lithium business at RF Semi, said, “The global industrial LFP battery market size was 27 trillion KRW as of last year, with the domestic market alone reaching 313.3 billion KRW. We plan to target the market by applying LFP batteries to mini trucks, electric scooters, camping batteries, and home energy storage systems (ESS).”

RF Semi is a company that develops and manufactures semiconductor devices (ECM chips) and light-emitting diode (LED) lighting. Since its largest shareholder changed to RF Global (formerly Jinpyeong Electronics) in April, it has been promoting a secondary battery new business. Jinpyeong Electronics owns LFP battery manufacturing plants in China, including Shanxi Jinpyeong.

Shanxi Jinpyeong has the capacity to produce 3.5 GWh of 32700 LFP annually. The LFP produced here is applied to electric motorcycles, ESS, electric buses, and more. This month, it launched a new product called the ‘K1’ battery, boasting high output and long life, and is conducting tests with global customers.

Hyun Deok-su said, “Shanxi Jinpyeong brought all capital, research personnel, and equipment from Korea and secured product reliability through quality control using an integrated manufacturing execution system (MES). We will proceed with the business by customizing the excellent battery cells produced at Shanxi Jinpyeong to suit customers and packing them at RF Semi.”

The reason RF Semi chose the LFP business as a new business is due to confidence in its growth potential. According to market research firm Wood Mackenzie, the market share of LFP is expected to grow from 10% in 2015 to over 30% by 2030, surpassing existing ternary batteries.

Hyun explained, “Existing ternary batteries are expensive, so demand for LFP batteries is increasing in affordable electric vehicles. About 50% of global LFP battery production is sold in Europe and North America.” In fact, the three major domestic battery companies have also officially announced LFP battery development and are expanding investments this year.

RF Semi also plans to physically divide its LED business division. The physical division will establish a new LED business corporation as a 100% subsidiary of RF Semi. Currently, about 60% of RF Semi’s losses come from the LED business division.

Lee Jeong-han, CFO, said, “The goal is to turn RF Semi profitable on a standalone basis by separating the LED business division, which accounts for a large portion of losses. After the division, we plan to normalize the business and eventually sell it.”

Meanwhile, RF Semi plans to discuss the agenda related to the physical division of the LED business division at the extraordinary general meeting of shareholders scheduled for September 19.

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