Dongwon inks deal with Dongkuk for secondary battery raw material

South Korean firm Dongwon Systems Corp. has signed an agreement with Dongkuk Industries Co. for the supply, sale and development of raw materials for nickel-plated steel sheets used in secondary batteries, the company announced on Thursday.

The deal secures a stable supply of nickel-plated steel sheets, a key material in cylindrical battery cans. Dongwon Systems plans to expand its production of cylindrical battery cans by processing the newly acquired raw materials.

A Dongwon Systems official said the company will use the deal to increase its production capacity for secondary battery materials, conduct R&D and enhance its technological capabilities to become a globally advanced materials company.

In February, the company invested about 58.5 billion won ($44 million) to expand its cylindrical battery can factory at the Asan Plant in South Chungcheong Province. Dongwon Systems expects to produce more than 500 million cylindrical battery cans annually once the factory is fully operational in the second half of this year.

Write to Hyung-Kyu Kim at khk@hankyung.com