Hankook & Co. invests in electrode startup for battery expansion

Korean tire giant Hankook & Co. announced Thursday a 9 billion won ($6.5 million) investment in JR Energy Solutions, a local secondary battery electrode foundry firm, in its first foray into the burgeoning EV battery market.

JR Energy Solutions specializes in producing electrodes, a crucial component of secondary batteries, based on its smart factory technology.

In February this year, the startup completed a 500 megawatt-hours electrode manufacturing facility in Eumseong, North Chungcheong Province, significantly boosting its production capabilities.

This investment grants Hankook & Co. a 15.2 percent equity stake in JR Energy Solutions, making it the third largest shareholder and a strategic investor.

With the ongoing transition to EVs and the wider adoption of energy storage systems, the global lithium-ion battery market is expected to burgeon by 2030.

Hankook & Co. noted that the growing demand for outsourced electrodes from global battery manufacturers, startups and equipment makers further heightened expectations for JR Energy Solutions' growth potential, which led to the decision to proceed with this investment.

With the stake acquisition, Hankook & Co. aims to seize early opportunities in the growing battery market to coordinate with its existing lead-acid battery business.

"We will utilize our top-tier technology, global automotive business network and expertise in lead-acid batteries, accumulated over more than 80 years," said a Hankook & Co. official.

The company plans to collaborate with JR Energy Solutions to develop lithium-ion battery cell technology and business partnerships, thereby strengthening its competitiveness in the battery market.