South Korean battery equipment maker Daebo Magnet is jumping onto the lithium processing bandwagon as soon as it completes the related facility investment by April, 2020, according to the company on Mar. 27.
During a shareholders’ meeting on this day, Daebo CEO Lee Jun-gak said the company is setting up the necessary equipment to enter the material processing business. “We plan on actively responding to the growing global demand for EVs,” said Lee.
Daebo has already spent KRW 2.9 billion on facility investment.
Lithium processing involves grinding lithium, a key ingredient for batteries, and then filtering out the iron before sales. In most cases, battery companies use electro magnetic filters for this process.
Daebo Magnetic’s mainstay is such filters that separates iron particles from battery materials, such as cathode. This makes the batteries more stable and less prone to explosions. Daebo manufactures both wet and dry-type filters. In Korea, the top three battery companies, along with those such as Posco Chemical and Cosmo AM&T are key customers of such equipment.
In 2019, Daebo posted sales of KRW 23.9 billion, up 15.8% on-year. Operating profit rose 10% to KRW 4.7 billion. About 70% of its profit comes from China, which was a cause for concern for its first quarter revenues on account of the coronavirus.
However, the company expects Beijing to continue stepping up investment in battery production facilities, which would be a plus factor for overall business.
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