Avaco is supplying its logistics equipment to Ultium Cells, the battery-making joint venture between LG Energy Solution and General Motors, TheElec has learned.
The South Korean equipment maker is providing the equipment to be used by the second factory of Ultium Cells, sources said.
Installation is expected to complete during the first half of the year. The order for the kits is worth over 10 billion won.
The supply is a huge win for Avaco, which had provided mostly battery roll to roll assembly kits and display production equipment to customers.
Ultium Cells has already announced over 8.4 trillion won worth of investment to build at least three battery factories in the US, which means more orders for production equipment are expected for equipment makers like Avaco.
Avaco’s logistics equipment will be used to connect the assembly and formation processes.
Batteries are done assembling are put into formation chambers that are stacked tens of meters high.
Avaco offers lifts, conveyors, sorters, auto-scanner and automated guided vehicles, which are likely included in its supply to Ultium Cells.
Meanwhile, the South Korean equipment maker was also in talks with a Europe-based battery maker for a potential supply deal, the sources added.