Swedish electric vehicle (EV) battery firm Northvolt will use equipment from a South Korean vendor for its new production line, TheElec confirmed Wednesday.
South Korea-based Jeil Machine was producing the mixing equipment and will supply them to Northvolt beginning in the second half of the year, people familiar with the matter said.
Jeil won the 45 billion won, turn-key project that will have it supply all equipment necessary for the mixing process.
The deal is worth more than the company’s annual revenue of 34.6 billion won last year.
Mixing equipment is used to make a slurry from various materials that is used to make batteries.
Mixing is followed by plating, assembling and finish in the battery production process.
Jeil specializes in mixing equipment alongside compatriots Yunsung F&C and TSI, in South Korea. The company has been a key supplier of them to local battery giants Samsung SDI, LG Chem and SK Innovation.
Going forward, Jeil is expected to win more orders from other battery makers besides Northvolt as most of them are upgrading their factories. Most battery makers are planning to increase their mixing equipment capacity from 1,000 liters to 2,000 liters.
Few companies, including Jeil, have the know-how to make the equipment larger.
Meanwhile, Northvolt is partnered with German car giant Volkswagen in EV. The two companies are investing 450 million euros into their joint venture by 2024.
They have requested showcases from South Korean equipment suppliers since last year to diversify their supply line for factory equipment. Northvolt has been using mixing equipment from Lead China in the past.
South Korean equipment makers such as CIS has supplied its coating equipment for the Swedish firm in the past. Compatriot PNE Solution has supplied formation and cycler equipment before to Northvolt.