Gangwon E Solution Strengthens Lithium Business

Gangwon Energy announced on the 31st that its subsidiary Gangwon E-Solution is actively expanding its lithium business.

Pyungsan Partners, the major shareholder of Gangwon Energy, secured 8.5 billion KRW from Shinhan Investment Corp. by using 1.07 million shares of Gangwon Energy treasury stock as collateral, which will be used to purchase raw materials.

A Gangwon Energy official explained, "The funds will be used to purchase raw materials necessary for producing products to be sold to customers, following the recent increase in orders for anhydrous lithium hydroxide from the subsidiary."

Since the end of last year, Gangwon E-Solution has started mass production and delivery of anhydrous lithium hydroxide to major domestic companies. It plans to supply more than 4,000 tons by the end of this year. Most of the quality and process tests for lithium supplied to domestic cathode material companies have been completed, and approval is pending.

A Gangwon Energy official added, "Including cathode material companies currently under additional discussions, the delivery volume this year is expected to reach up to 12,000 tons," and said, "We saw the recent decline in lithium prices as an opportunity and decided to purchase raw materials through financing."

Gangwon E-Solution is diversifying its business areas not only in anhydrous lithium hydroxide for cathode materials but also in cathode material additives and new anode material businesses. Gangwon E-Solution recorded an average annual growth rate of 174% from 2020 to 2023.

A Gangwon E-Solution official stated, "We plan to secure new growth engines and pursue listing on the KOSDAQ market," adding, "We will expand production capacity to an annual scale of 25,000 tons through facility expansion."

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