KEMTEK announced on the 4th that it has signed a contract worth a total of 100 billion won with a global battery company to supply square cap parts for US ESS (energy storage systems).
Under this contract, mass production of approximately KRW 50 billion worth of batteries will commence in the first half of 2026 over a five-year period. Additional supply exceeding KRW 50 billion for the period 2031-2035 is expected to be finalized by 2027. With this order, KEMTEK has secured a core component portfolio, including square cans and caps, for the U.S. ESS market.
Cap products are a different type from those offered by existing domestic battery manufacturers, and are supplied by applying KEMTEK's mass production capabilities to meet customer requirements. With the recent expansion of the AI industry and the increased use of renewable energy, demand for data centers and power infrastructure is increasing, leading to a stable sales and profit structure in the ESS battery components market.
A company official explained the background to this order, saying, “It is the result of the client actively engaging in negotiations due to the strengthening of restrictions on the supply chain of Chinese companies in the U.S. We are also in negotiations for several additional projects, and some of them will lead to additional orders within the year.”
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