[Featured Stock] IrenTech, Samsung SDI Supplies ESS to Tesla... Benefiting from Biden's Green Policy

[Asia Economy Reporter Hyunseok Yoo] IrenTech is showing strength. The news that Samsung SDI is supplying energy storage system (ESS) batteries to Tesla appears to have influenced the stock price. Tesla operates an ESS business in addition to electric vehicles.

As of 10:27 AM on the 12th, IrenTech was trading at 8,710 KRW, up 4.69% (390 KRW) from the previous trading day.

On this day, an economic newspaper reported that Samsung SDI began supplying ESS batteries to Tesla from the fourth quarter of last year. Industry insiders expect the supply volume to be substantial. According to Tesla, the ESS installation capacity in the third quarter of last year was a total of 759 MWh, approximately double compared to 419 MWh in the first quarter of the same year. With Samsung SDI resuming supply to Tesla, it is expected that Samsung SDI's position in the ESS battery market will become even stronger. The secondary battery industry is paying close attention to whether Samsung SDI will also supply electric vehicle batteries to Tesla.

IrenTech has entered the medium-to-large battery pack market based on its production technology for small battery packs used in smartphones and laptops. Medium-to-large battery pack sales are expected to begin in earnest this year. Medium-to-large battery packs are used in electric vehicles and ESS. The company produces battery packs, phone cases, chargers, and other products, supplying them to Samsung Electronics and Samsung SDI. Sales to Samsung Electronics and Samsung SDI account for about 87% of total sales.

Expectations for increased ESS demand have also grown following the inauguration of U.S. President-elect Joe Biden. Under the Green New Deal policy framework, President-elect Biden has planned to invest approximately $2 trillion in eco-friendly energy research and development and the establishment of low-carbon infrastructure. As renewable energy generation is expected to surge, the demand for ESS is also likely to increase significantly.

This content was produced with the assistance of AI translation services.