Magnetic separator maker Daebo Magnetic has been expanding into battery material processing since earlier this year and the new business will start contributing in revenue in 2022, the company CEO said.
Daebo Magnetic CEO Lee Sang-ick said the company has started to contact potential customers during the second of 2021 and is aiming to secure up to 50 billion won in annual revenue from the new business.
The company produced samples in April and was in talks with battery cathode and battery cell companies, Lee said.
Daebo Magnetic currently has a processing line that takes up one-sixth of the space at its factory in Eumseong country.
This line will be enough for an annual between 20 billion won and 50 billion won, he said.
The company was founded in 1974 and is a leader is magnetic separators that are used to remove metals from cement, carbon blacks and food raw materials.
It used this technology to enter the battery market in 2008. As unwanted metals in battery cathode can cause swelling of batteries, magnetic separators are a must in battery production lines.
Daebo Magnetic controls the global electromagnetic separator market with a Japanese rival.
The South Korean company is also the only one in the world that offers both dry and wet magnetic separation technology.
Daebo Magnetic said it sells 150 units of magnetic separators per month and controls 70% of the worldwide market.
The company is entering the battery material processing market to reduce its reliance on magnetic separators.
Daebo Magnetic offers to separate materials such as lithium hydroxide from batteries and process them as its customers want to.
CEO Lee said the business has demand from lithium, cathode and battery cell companies.