Dongkuk Industries Scales Up Nickel-Plated Steel Sheet Production... "North American Supply Expected to Reach 4,000 Tons per Quarter Next Year"

Dongkuk Industries, a company specializing in cold-rolled specialty steel, is stepping up efforts to target the North American cylindrical secondary battery market as it ramps up mass production of nickel-plated steel sheet (NPS). Following completion of quality approval by a North American customer, the company plans to expand supply volumes starting next year and improve the profitability of its nickel-plated steel sheet business.

Dongkuk Industries recently announced that it had received quality approval from a key North American customer for nickel-plated steel sheet used in 46-series cylindrical battery cases with a diameter of 46 mm. The company plans to be the sole supplier of 46-series materials to that customer.

Commercial production will begin in the fourth quarter of this year. The company plans to produce and supply approximately 1,600 tons in total, combining materials for secondary battery cases destined for North America and materials for steel pipes destined for India. Starting in the first quarter of next year, supply of 46-series materials to North America is expected to increase to approximately 4,000 tons per quarter as the customer expands mass production, the company said.

In September 2024, Dongkuk Industries invested approximately 130 billion won to complete a nickel-plated steel sheet plant in Pohang. Commercialization took longer than initially expected due to slower growth in the electric vehicle market and customer quality certification procedures. During that time, the company continued to stabilize production lines and improve quality while developing and certifying products for individual customers.

The company is also working to secure global customers. Quality certification for 46-series materials, currently underway with two German premium automakers, is at the final approval stage. Dongkuk Industries is also conducting product tests and reliability evaluations with global battery cell manufacturers to expand its customer base.

Dongkuk Industries currently has an annual nickel-plated steel sheet production capacity of 80,000 tons. The plant was designed with space for expansion, and adding plating equipment could increase capacity to a maximum of 130,000 tons. The company expects to expand capacity around 2029, with the timing and scale of the investment to be determined based on a comprehensive assessment of the electric vehicle market, demand for battery materials, and customer supply requirements.

The company is also expanding its product lineup. Following its work on 46-series materials, Dongkuk Industries is developing materials for 21-series batteries used in power tools, drones, physical AI robots, and personal mobility devices.

The company is preparing to supply the materials in line with a domestic battery maker's mass production schedule for the first half of next year. It is also in discussions with a major Chinese battery cell manufacturer, aiming for mass production next year. In India, Dongkuk Industries plans to continue supplying materials for steel pipes while expanding into materials for battery cases used in electric two-wheelers.

The competitiveness of Dongkuk Industries' nickel-plated steel sheet business is based on manufacturing technology and quality control capabilities built up through its existing cold-rolled specialty steel business. Nickel-plated steel sheet is made by plating the surface of cold-rolled steel sheet with nickel, then heat-treating and surface-rolling it to achieve the strength and workability required by customers. Dongkuk Industries has worked to maintain uniform plating thickness and minimize surface defects, while optimizing process conditions to meet each customer's requirements.

A company representative said, "Safety is critical for secondary battery cases. Technology that consistently maintains surface quality and material properties is important."

Dongkuk Industries expects the profitability of its nickel-plated steel sheet business to begin improving in earnest in the second half of 2027, supported by increased mass production volumes next year and regular supply to major customers. The company expects the business to normalize sometime between the second half of 2027 and the first half of 2028.

The company's strategy is to maintain its existing cold-rolled specialty steel business as a stable foundation while developing nickel-plated steel sheet into a new growth driver. Dongkuk Industries also said that allegations of trade secret infringement related to its nickel-plated steel sheet business had been dismissed. With the related uncertainty eased, the company plans to focus on expanding supply to North America and commercializing new products.

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