[Click eStock] "SM Bexel Supplies Lithium Batteries for Chunmoo...Expanding Defense Business"

SM Bexel has completed the delivery of lithium ampoule batteries for the multi-launch rocket system "Chunmoo (K239)" and is accelerating the expansion of its defense business by participating in a demonstration project for military drones.

On June 22, independent research firm ValueFinder analyzed that SM Bexel is securing new references in the defense sector and expanding its business domain.

Lee Chungheon, a researcher at ValueFinder, explained, "SM Bexel was founded in 1961 and listed on the Korea Exchange in 1994 as a manufacturer of automotive parts and batteries. In its automotive division, the company supplies engine and powertrain components such as water pumps and oil pumps, mainly to affiliates of Hyundai Motor Group. In its battery division, it operates in the special battery business, producing primary batteries such as alkaline and manganese batteries, as well as battery packs."

In February, SM Bexel completed its first delivery of 230mm-class lithium ampoule batteries for unguided rockets used in the Chunmoo multi-launch rocket system, marking its official entry into the defense market. The supply contract is valued at approximately KRW 18.7 billion, and the products ultimately are applied to the Chunmoo system via Korea Defense Industry.

Researcher Lee stated, "The lithium ampoule batteries supplied by SM Bexel are ultra-small primary batteries about 5mm in size, and they perform the self-destruction function for unexploded ordnance, thereby enhancing the safety of weapon systems. Since discussions for follow-up supply contracts are currently underway, it is worth paying attention to the potential for additional orders and expansion into new application areas based on this delivery track record."

He added, "SM Bexel is expanding its business domain into the military drone sector and is pursuing diversification of its defense portfolio. The company is currently participating in a drone demonstration project led by the Ministry of Land, Infrastructure and Transport and is conducting test operations. It is continuing product development and verification work with the goal of mass production in October."

It is also understood that product tests are underway targeting defense-related organizations such as Army Headquarters and the Defense Acquisition Program Administration. Researcher Lee forecast, "The defense references secured through initial deliveries of military batteries and participation in government projects will serve as a positive foundation for future business expansion."

The increasing importance of drones and unmanned systems amid changes in the global security environment is also cited as a factor boosting SM Bexel's growth potential. Researcher Lee evaluated, "The special battery business has a high likelihood of becoming a mid- to long-term growth driver."

He emphasized, "Based on its existing businesses in automotive parts and primary batteries, SM Bexel is expanding into thermal management components for eco-friendly vehicles, battery packs, and special batteries for military use. Given that the defense market has high entry barriers and proven delivery records are critical, the experience supplying Chunmoo and participating in military drone demonstration projects could become key factors in a future revaluation of the company's value."

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