KNS-Jongrui Establish Domestic Joint Venture for Direct Production of Secondary Battery Components

KNS (KNS, CEO Jeong Bong-jin), a manufacturer of automation equipment for secondary battery CID, BMA, and CAP, is set to directly produce secondary battery CIDs.

On the 3rd, KNS announced that it signed an MOU to establish a joint venture with Zhongrui, a cylindrical battery parts manufacturer based in Changzhou, China. The signing ceremony was attended by KNS CEO Jeong Bong-jin and Zhongrui CEO Yang Haksin, among others.

Through this business agreement, KNS plans to combine its automation equipment manufacturing technology with Zhongrui’s parts manufacturing expertise to directly produce 2170 cylindrical battery parts through the domestic joint venture. Once production begins, marketing cooperation targeting new battery manufacturers both domestically and overseas will also follow.

In addition, KNS plans to collaborate with Zhongrui to research and develop parts for the 46-pie cylindrical battery, which is gaining attention as the next-generation battery. Since Tesla announced the ‘4680 battery’ with a height of 80mm and an energy density five times higher than existing batteries, cylindrical batteries have been spotlighted as a key next-generation form factor.

Accordingly, KNS has proactively researched and developed equipment related to the 46 series and is currently manufacturing mass production equipment for the Chinese market based on this. Leveraging the MOU with Zhongrui, KNS aims to create new market opportunities and expand its business scope through the development and direct production of 46 series cylindrical battery parts.

Zhongrui, the company with which KNS signed the MOU, specializes in producing cylindrical battery parts such as CAN and CAP. Zhongrui was listed on the Shenzhen Stock Exchange in April, currently holding a market capitalization of approximately 820 billion KRW, with sales of about 130 billion KRW as of 2023. Zhongrui currently supplies 2170 CAP parts to LG Energy Solution and has various other battery manufacturers as clients.

KNS CEO Jeong Bong-jin stated, “Through this MOU with Zhongrui, the company will have an opportunity to enhance not only its equipment business but also its parts development and manufacturing capabilities,” adding, “We will do our best to expand the company’s sales volume and lead the secondary battery parts and equipment market through diverse collaborations with Zhongrui in the joint venture.”

Meanwhile, KNS announced its Q1 performance on the 16th, reporting sales of 9.5 billion KRW, operating profit of 700 million KRW, and net profit of 900 million KRW. KNS currently holds an order backlog of 23.9 billion KRW, and as orders delayed due to the chasm in the electric vehicle market gradually recover, it is expected that full-scale revenue recognition will begin this year.

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