HD Hyundai Oilbank said on Aug. 11 it has commercialized South Korea's first engine oil specifically designed for hydrogen internal combustion engines (H2-ICE).

The company said it has begun supplying its XTeer H2-ICE engine oil to hydrogen commercial vehicle manufacturers, including Tata Daewoo Mobility.

HD Hyundai Oilbank began developing lubricant technology for hydrogen internal combustion engines in 2023 and completed product development and performance validation last year.

Hydrogen internal combustion engines operate at higher combustion temperatures than conventional internal combustion engines and generate moisture during combustion, which can accelerate engine wear and degrade lubricant performance.

According to the company, the new engine oil incorporates technologies designed to protect engine components, control moisture and suppress deposits generated during the combustion process.

An HD Hyundai Oilbank official said the company has secured proprietary lubricant technology for hydrogen internal combustion engines and successfully commercialized the product.

The official added that the company plans to expand its portfolio of high-value-added lubricant products targeting the global market.

EcoPro said its investments in nickel smelting projects in Indonesia are generating an average operating margin of 20%, as the company expands its presence in the country to strengthen nickel supply security and improve cost competitiveness.

The company said on Aug. 11 that it held an investment seminar on its Indonesian BNSI project on Aug. 10 at the JW Marriott Hotel Seoul. More than 100 attendees, including EcoPro executives, independent directors and institutional investors, participated in the event.

Since 2022, EcoPro has invested a total of 500 million dollars in four projects within the Indonesia Morowali Industrial Park (IMIP). Through those investments, the company has secured annual rights to procure 29,000 metric tons of nickel.

Chief Executive Officer Song Ho-jun said the first phase of the company's investments has generated an average operating margin of 20%.

"In addition to nickel, we are generating further profits from by-products such as cobalt and chromium," Song said.

Building on the performance of its existing investments, EcoPro will participate as a major shareholder in the BNSI nickel smelter currently under construction in Indonesia's International Green Industrial Park (IGIP). Combining the first and second investment phases, the company expects to secure annual rights to procure a total of 65,000 metric tons of nickel.

The BNSI project is being developed jointly with China's GEM Co., Ltd. and Indonesian nickel mining company PT Vale Indonesia (PTVI). Construction of the smelter began in April last year, with commercial production targeted for the second quarter of next year.

Song said the company also plans to leverage the hydrometallurgical nickel processing technology and operational expertise gained in Indonesia to expand into the urban mining and battery recycling business, in addition to generating returns from the BNSI investment.

SFA has begun shipping manufacturing equipment for LS Cable & System's subsea cable plant in the United States.

The company said on Aug. 11 it held a shipment ceremony for the first 10,000-metric-ton-class turntable destined for LS Cable & System's manufacturing facility in Virginia. Between the fourth quarter of last year and the first quarter of this year, SFA secured turntable supply contracts worth approximately 150 billion won.

SFA will deliver dozens of turntables to the Virginia plant in phases through the end of 2027.

Turntables are used to wind, store and transport completed subsea cables to the next stage of the manufacturing process. Because long-distance subsea cables are highly susceptible to excessive tension and twisting, the equipment must precisely control cable handling. The turntables supplied by SFA measure more than 40 meters in diameter.

Working with LS Cable & System, SFA has developed subsea cable manufacturing equipment, including vertical continuous vulcanization (VCV) systems and turntables. The company has also supplied similar equipment to LS Cable & System's subsea cable plant in Donghae, Gangwon Province.

An SFA official said the company intends to successfully complete the Virginia project by leveraging its experience supplying 3,000-ton-class VCV systems and 10,000-ton-class turntables, while positioning itself to secure additional business opportunities as LS Cable & System expands its US investment.

Samsung SDI said on Aug. 11 it will end its battery joint venture with General Motors (GM), bringing to a close the partnership two years after the companies agreed to establish the venture. Following the transaction, the remaining joint ventures between South Korean battery makers and global automakers in the United States will be Ultium Cells, operated by LG Energy Solution and GM, and StarPlus Energy, operated by Samsung SDI and Stellantis.

Samsung SDI disclosed in a regulatory filing that it will terminate its joint venture agreement with GM. The company will acquire GM's entire 49.99% stake in Synergy Cells Holdings, converting the venture into a wholly owned subsidiary. The company plans to rename it Samsung SDI Synergy Cells Holdings.

Samsung SDI did not disclose the purchase price for GM's stake.

"Under the agreement between the two companies, it is difficult to disclose specific details," a Samsung SDI official said. "The investment scale and production plans after the transition to a wholly owned operation have not yet been finalized."

As of the filing date, Samsung SDI's cumulative investment in Synergy Cells totaled 275.3 billion won.

Samsung SDI and GM agreed in March 2023 to build a battery manufacturing plant in the United States and signed a definitive agreement to establish the joint venture in August 2024. The companies had planned to invest approximately 3.5 billion dollars to build a battery plant with annual production capacity of 27 gigawatt-hours (GWh) in New Carlisle, Indiana, with mass production originally scheduled to begin in 2027.

The project was delayed as North America's electric vehicle (EV) market expanded more slowly than expected. In particular, after the US government eliminated the federal consumer EV tax credit under Section 30D last September, automakers scaled back EV investment and production plans. GM reduced planned EV output and revised its product strategy to place greater emphasis on hybrid vehicles. Battery manufacturers have also begun redirecting part of their US EV battery production capacity to the energy storage system (ESS) market.

GM and Stellantis are now the only automakers maintaining battery joint ventures with South Korean manufacturers in the United States. Ford Motor dissolved its BlueOval SK joint venture with SK On last year and no longer operates a battery joint venture in the country.

Both GM and Stellantis have also reduced the scope of their battery partnerships with South Korean companies. Last year, GM transferred the Ultium Cells battery plant under construction in Lansing, Michigan, to LG Energy Solution, which acquired the facility and related assets for 3.1354 trillion won and converted it into a wholly owned plant. In February this year, Stellantis ended its joint venture with LG Energy Solution in Canada, NextStar Energy, with LG Energy Solution acquiring Stellantis' 49% stake for 100 dollars.

Samsung SDI plans to operate the Indiana facility independently and use it as a manufacturing base for a range of products, including ESS and EV batteries. The company may prioritize ESS battery production because growing orders in the US market are increasing the need for additional manufacturing capacity.

Samsung SDI is already allocating a larger share of its US production to ESS batteries than to EV batteries. Three of the four production lines at StarPlus Energy Plant 1 have been designated for ESS batteries, and the company is considering adding another ESS production line to meet rising demand.

During its second-quarter earnings conference call on July 30, Samsung SDI said confirmed ESS orders already cover a significant portion of its production capacity through 2029.

"If projects with a high probability of being awarded in the second half are included, demand is expected to exceed production capacity beginning in 2028," the company said.

The termination of the joint venture is expected to have only a limited impact on South Korean battery equipment suppliers. Because construction of the Indiana plant had already been delayed, major production equipment orders had not yet been placed, and equipment manufacturers had not begun manufacturing the relevant systems.

Although Samsung SDI and GM are ending joint operation of the factory, the companies will continue collaborating on battery development. They have signed an agreement to jointly conduct early-stage development of next-generation prismatic batteries for electric vehicles.

Hanwha Solutions said on Aug. 11 it has commercialized a power cable material containing 50% post-consumer recycled (PCR) plastic feedstock.

The company said it has completed customer qualification for CHBA-8241RC, a high-density polyethylene (HDPE)-based jacket material for power cables made with recycled plastic feedstock.

CHBA-8241RC is a proprietary composite material developed by Hanwha Solutions. According to the company, it maintains electrical performance comparable to conventional products while reducing carbon emissions by approximately 34% per kilogram of material.

Hanwha Solutions completed product development and pilot production last year. In the first half of this year, it finished production trials and quality validation with cable manufacturers. The company said the commercialization expands its cable materials portfolio from ultra-high-voltage insulation materials to environmentally friendly cable jacket compounds.

Hanwha Solutions is also expanding its recycled polyethylene (rPE) business using waste plastics. Its related products have obtained Global Recycled Standard (GRS) and ISCC PLUS certifications and are used in applications including consumer electronics packaging, cosmetic containers and industrial recycled packaging bags.

Hanwha Group has increased its stake in Korea Aerospace Industries (KAI) to more than 15%, broadening its base for participation in the key decision-making of the country's sole aircraft manufacturer.

Hanwha Systems disclosed on Aug. 10 that it had acquired an additional 3.45% stake in KAI through open-market purchases over the past month.

Following the purchases, Hanwha Group's combined ownership in KAI has risen to 15.89%, consisting of a 9.90% stake held by Hanwha Aerospace, a 4.98% stake held by Hanwha Systems and a 1.01% stake held by Hanwha Aerospace USA.

Hanwha is now KAI's second-largest shareholder. With its ownership exceeding 15%, the group plans to file for a business combination review with South Korea's Fair Trade Commission. KAI's largest shareholder remains the Export-Import Bank of Korea, which owns 26.41% of the company.

Hanwha and KAI have already been expanding cooperation in the aerospace sector. In February, the two companies agreed to pursue joint development of an aircraft engine for a future version of the KF-21 fighter jet, collaborate on unmanned aircraft development and exports, and jointly enter commercial space markets involving satellites and launch vehicles.

Hanwha Aerospace is active in aircraft engines and space launch vehicles, while Hanwha Systems operates radar and satellite businesses. KAI is South Korea's only fully integrated aircraft manufacturer and possesses system integration capabilities across fighter jets, helicopters and unmanned aerial vehicles. Industry observers say closer cooperation between the companies could create synergies spanning aircraft platforms, engines, radar systems, weapons integration and space-related businesses.

The increased stake also comes as Hanwha pursues a large-scale investment strategy focused on aerospace, space and artificial intelligence. The group recently announced plans to invest a total of 55 trillion won in aerospace and AI businesses between this year and 2040.

Hanwha Aerospace plans to invest 23 trillion won in launch vehicle programs, including assembly facilities and development test infrastructure. The company also plans to invest 2 trillion won in defense AI, developing crewed-uncrewed weapons for air and ground use and crewed-uncrewed integrated combat systems.

Hanwha Systems plans to invest 20 trillion won in satellite-related businesses, including very low Earth orbit synthetic aperture radar (SAR) satellites, space-based AI data centers and low Earth orbit satellite communications networks.

The cities of Sacheon, where KAI is headquartered, and Changwon, home to major Hanwha Aerospace operations, are expected to play increasingly important roles in Hanwha's aerospace strategy. The group is also envisioning a southern aerospace corridor linking Changwon, Sacheon and the Naro Space Center in Goheung.

LG Chem has been selected as the cathode material supplier for HL-GA Battery Company, the U.S. battery manufacturing joint venture between Hyundai Motor Group and LG Energy Solution, according to industry sources. By taking on a key material that accounts for roughly 40% of battery cell cost, LG Chem is expected to accelerate its transition from petrochemicals toward an advanced materials-focused business.

Industry sources said HL-GA selected LG Chem in July as a supplier of cathode materials for electric vehicle batteries. The materials are expected to be used in battery cells destined for 2029-model electric vehicles produced at Hyundai Motor Group Metaplant America (HMGMA) in Georgia.

Cathode materials are a key battery component that largely determines capacity and performance. LG Chem is expected to supply two nickel-cobalt-manganese (NCM) cathode products: a high-nickel version and a mid-nickel version. High-nickel cathodes contain more than 80% nickel, while mid-nickel products contain roughly 60% nickel, both of which are among LG Chem's core battery material offerings.

High-nickel cathodes increase energy density by raising nickel content, making them suitable for extending driving range in electric vehicles, particularly in mid-size, large and high-performance models. Mid-nickel products offer improved cost competitiveness by reducing reliance on relatively expensive nickel.

Among the two products, the high-nickel cathode is expected to be adopted first for mass production. Supply volumes have not yet been finalized. Industry sources said orders are likely to be adjusted according to vehicle production plans rather than being fixed through long-term volume commitments.

"Most projects currently under discussion between automakers and suppliers are aimed at vehicles launching in the second half of 2028 or later," an industry source said. "For a 2029-model vehicle, materials suppliers need to be ready for mass production around the summer of 2028, meaning product specifications and supply conditions generally need to be finalized well in advance."

The supplier selection process reportedly included LG Chem, Umicore and Ecopro BM. All participants proposed supply chains that excluded Chinese-sourced materials.

The companies also relied on South Korean precursor suppliers. Precursors are intermediate materials used in cathode production and account for roughly 70% of cathode manufacturing costs.

LG Chem sources precursors from Korea Precursor Company (KPC), a joint venture with Kemco, a subsidiary of Korea Zinc, and from Eco & Dream. Umicore uses precursors supplied by Eco & Dream, while Ecopro BM utilizes materials from Ecopro Materials.

Industry sources said LG Chem's ability to meet performance specifications and pricing requirements, along with its existing relationship with LG Energy Solution, likely contributed to its selection among suppliers offering non-China-compliant supply chains.

Hyundai Motor Group has been increasing its requirements for non-Chinese materials across its battery supply chain. The company is expanding oversight beyond battery components to include raw materials such as nickel and cobalt. The strategy aligns with broader U.S. efforts to reduce dependence on Chinese battery materials and components.

The automaker is reportedly requiring non-Chinese battery materials not only for vehicles sold in the United States but also for models supplied to other regions, including Europe. An industry source said Samsung SDI, as well as SK On and LG Energy Solution, are reviewing plans to replace some Chinese-sourced materials with products from South Korean suppliers in response to Hyundai's requirements.

Located in Bryan County, Georgia, HL-GA began construction in 2023. The project faced disruptions in September 2025 when U.S. Immigration and Customs Enforcement (ICE) conducted an operation targeting undocumented workers, resulting in the detention of more than 300 workers at the site. The company is currently conducting pre-production trial operations and line stabilization activities with suppliers.

HL-GA is expected to supply batteries to HMGMA as well as Hyundai Motor's plant in Montgomery, Alabama, and Kia's facility in West Point, Georgia. While SK On currently serves as the sole battery supplier for those plants, LG Energy Solution is expected to join as a second supplier.

Another Hyundai Motor Group battery joint venture in the United States, Hyundai-SK Battery America (HSBMA), is already using non-Chinese materials. Umicore supplies cathode materials produced at its Cheonan facility in South Korea. The venture currently uses high-nickel products and is expected to transition to mid-nickel cathodes for 2028-2029 model-year vehicles.

An LG Chem spokesperson declined to comment on reports regarding its selection as a supplier for HL-GA.

LS Electric and GS Engineering & Construction (GS E&C) have agreed to collaborate on direct current (DC) power distribution technology and power equipment supply for artificial intelligence (AI) data centers.

LS Electric said on Aug. 10 that it signed a memorandum of understanding (MOU) with GS E&C to jointly respond to changes in the AI data center business environment. Under the agreement, the companies will develop next-generation DC power distribution technologies aimed at improving power efficiency in high-power, high-density AI data centers.

As part of the partnership, LS Electric will supply key electrical equipment for AI data center projects being developed by GS E&C, including switchboards, gas-insulated switchgear (GIS) and extra-high-voltage transformers.

LS Electric is currently developing DC power distribution products such as solid-state transformers (SSTs), solid-state circuit breakers (SSCBs) and energy storage systems (ESS). The company has also established a production facility at its Cheonan site in South Chungcheong Province that operates entirely on a DC power distribution system.

An LS Electric official said demand for DC power distribution technologies is increasing as operators seek to improve the power efficiency of AI data centers.

HD Hyundai Heavy Industries has secured a 956 billion-won contract to supply power generation equipment for data centers operated by major U.S. technology companies.

The company said on Aug. 10 that it signed an agreement with U.S. energy infrastructure developer Corban Energy Group to supply power generation systems based on its HiMSEN engines. The contract covers a total capacity of 1,000 megawatts (MW), or 1 gigawatt (GW), which will be used as a power source for data centers operated by major technology companies in the United States.

Corban Energy Group is an energy infrastructure and engineering company that supplies gas, liquefied natural gas (LNG) and power products for infrastructure projects, including data centers and projects for the U.S. Department of War (DoW), according to the company.

The HiMSEN engine supplied by HD Hyundai Heavy Industries is a 9.6 MW-class high-capacity medium-speed engine. Its ability to operate continuously around the clock makes it suitable for power generation systems serving data centers that require stable and uninterrupted electricity supplies.

In April, HD Hyundai Heavy Industries signed a 627.1 billion-won contract with U.S. energy infrastructure developer AEG to supply power generation equipment for data centers. With the Corban Energy Group agreement, the company has now secured another major contract in the fast-growing U.S. data center power market.

"We continue to receive inquiries regarding collaboration opportunities in the data center power generation engine market," an HD Hyundai Heavy Industries official said.

AP Systems reported revenue of 162.844 billion won and operating profit of 9.595 billion won in the second quarter, the company said on Aug. 10. Revenue and operating profit increased 47.7% and 254.1%, respectively, from a year earlier.

First-half cumulative revenue reached 358.977 billion won, up 54.6% from the same period last year. Operating profit rose 166.5% to 27.583 billion won.

Revenue from organic light-emitting diode (OLED) equipment increased approximately 99% from a year earlier, while parts sales rose 25%. New semiconductor equipment orders currently stand at 78.5 billion won.

AP Systems is expanding its semiconductor equipment portfolio, focusing on rapid thermal processing (RTP) systems and laboratory automation equipment. The company is targeting 100 billion won in new semiconductor equipment orders this year.

In the near term, AP Systems aims to increase the semiconductor business's contribution to total company revenue to 20%. By 2030, it plans to raise that figure to 30%.

AP Systems paid 5 billion won in year-end dividends this year based on its previous fiscal year's results. The company also repurchased treasury shares worth 3 billion won and plans to retire the acquired shares.

"We will accelerate the development of new growth drivers centered on semiconductors," an AP Systems official said. "Through shareholder return initiatives, we aim to establish ourselves as a leading value-up company in the capital market."

LG Energy Solution has agreed to purchase more than 5 trillion won worth of lithium iron phosphate (LFP) cathode materials from Chinese battery materials supplier Lopal Tech, deepening cooperation as it ramps up LFP battery production for energy storage systems (ESS).

Lopal Tech disclosed on Aug. 6 that it signed an LFP cathode supply agreement with LG Energy Solution. The contract runs for three years from Jan. 1, 2026, through Dec. 31, 2028. The annual transaction cap is 9 billion yuan, equivalent to a total of 27 billion yuan, or about 5.7 trillion won, over the contract period.

Neither company disclosed shipment volumes or delivery regions. Given that more than 80% of LG Energy Solution's LFP battery production capacity is concentrated in North America, a substantial portion of the materials is expected to be supplied there.

The two companies are also expanding cooperation in raw materials. LG Energy Solution will supply Lopal Tech with lithium carbonate and other materials required for LFP cathode production. The annual transaction cap is 6 billion yuan, equivalent to 18 billion yuan, or about 3.75 trillion won, over the three-year period.

Cathodes are a key battery material that determines capacity, output and overall performance, accounting for more than half of battery manufacturing costs. South Korean materials suppliers have traditionally focused on nickel-based ternary cathodes, leaving domestic LFP cathode supply capacity relatively limited. China, meanwhile, established large-scale LFP material supply chains after investing heavily in the segment for years. LG Energy Solution, already a large-scale producer of LFP batteries, has increasingly relied on Chinese suppliers to secure materials quickly.

LG Energy Solution has been working with Lopal Tech subsidiary Changzhou Lithium Source since 2024. The company, commonly known as LBM, was included among key partners at LG Energy Solution's 2026 Partners Day event earlier this year.

The two companies signed a long-term agreement in February 2024 covering the supply of 160,000 metric tons of LFP cathode materials through 2028. In December of the same year, they expanded the agreement to 260,000 tons. Industry estimates at the time valued the deal at more than 2 trillion won to 3 trillion won. LG Energy Solution also acquired a 20% stake in LBM's Indonesian subsidiary, PT LBM Indonesia, in February 2025.

LBM's Indonesian facility plans to expand annual LFP cathode production capacity to 240,000 tons. After launching a first-phase plant with annual capacity of 30,000 tons in 2024, the company completed a second-phase facility with 90,000 tons of capacity. Last month, it began construction of a third-phase plant capable of producing 120,000 tons annually with an investment of about 230 billion won.

Business between LG Energy Solution and Lopal Tech has grown rapidly. Lopal Tech's sales to LG Energy Solution increased from 7.7 billion won in 2023 to 300 billion won last year. During the first part of this year alone, sales reached 350 billion won, already exceeding last year's total. Raw materials supplied by LG Energy Solution to Lopal Tech also increased from 37 billion won last year to 137.7 billion won this year.

The expanded agreement appears aimed at supporting growing production of LFP batteries for North American ESS applications. LG Energy Solution has been producing JF2 LFP cells for ESS applications in North America since the second half of last year.

The company currently manufactures ESS batteries at four sites: Holland, Michigan; L-H Battery Company in Ohio; Ultium Cells in Tennessee; and NextStar Energy in Canada. An ESS production line at its Lansing, Michigan facility is also scheduled to begin operations later this year. LG Energy Solution plans to expand global ESS battery production capacity to more than 60 gigawatt-hours (GWh) by the end of this year, with North America accounting for more than 50 GWh.

As of the end of last year, LG Energy Solution had secured approximately 140 GWh of cumulative ESS battery orders worldwide. The company booked 90 GWh of new orders during 2025 and plans to exceed that figure this year. Its ESS customer base includes Tesla, Terra-Gen, Excelsior Energy Capital, EG4 Electronics and Hanwha Qcells.

POSCO Future M has reached an agreement with a South Korean battery manufacturer to supply more than 190,000 metric tons of lithium iron phosphate (LFP) cathode materials under a long-term contract.

The company said on Aug. 6 that it agreed to supply more than 190,000 tons of LFP cathode materials over a six-year period from 2027 through 2032. The two companies plan to finalize detailed terms and sign a definitive supply agreement during the third quarter.

To support the supply program, POSCO Future M recently converted part of a high-nickel cathode production line at its Pohang plant into an LFP cathode production line. The company is currently conducting customer qualification procedures for prototype products and plans to begin mass-production shipments by the end of this year.

POSCO Future M said it will strengthen price competitiveness by leveraging raw-material advantages within the POSCO Group. The company plans to lower production costs by utilizing iron oxide generated as a byproduct of steelmaking processes and lithium produced from salt lake operations in Argentina.

The company is also in discussions with other battery manufacturers regarding additional LFP cathode material supply agreements. It said production capacity will be expanded in line with future order intake.

EcoPro BM said its sulfide-based solid electrolyte development project for all-solid-state batteries has been selected for South Korea's third-generation "Super Eul" program, a government initiative led by the Ministry of Trade, Industry and Resources to foster globally competitive materials, components and equipment technologies.

The company said on Aug. 6 that its sulfide-based solid electrolyte project was chosen as a beneficiary of the program. The Super Eul initiative is a research and development (R&D) support scheme designed to cultivate key companies capable of securing world-leading technologies in strategic materials, components and equipment sectors. Selected projects can receive up to 20 billion won in R&D funding over a period of more than seven years.

Sulfide-based solid electrolytes are a key material for all-solid-state batteries. They are considered a promising next-generation battery material due to their high ionic conductivity and strong safety characteristics.

EcoPro BM currently operates a pilot plant with annual production capacity of 40 metric tons of sulfide-based solid electrolytes. The company said it has completed qualification processes with major battery manufacturers and is targeting mass production in 2027. It has finalized the design of its commercial production line and plans to build manufacturing facilities in line with customer demand.

In addition to solid electrolytes, EcoPro BM is also developing cathode materials for all-solid-state batteries. The company aims to strengthen its competitiveness in next-generation battery materials by leveraging its existing expertise in high-nickel cathode technologies.

"Discussions are under way with major customers regarding pilot-scale production, and the earliest timeline for mass production is expected to be 2027," said Gong Bo-hyun, vice president of research and development at EcoPro BM. "We have completed the design of the production line and are prepared to begin construction immediately once customer demand is confirmed."

POSCO Air Solution, the industrial gas subsidiary of the POSCO Group, has obtained an international quality certification for the production of high-purity rare gases used in aerospace and defense applications.

The company announced on Aug. 6 that it received AS9100D certification, the globally recognized aerospace and defense quality management system standard, from LRQA.

AS9100D is an international standard based on ISO 9001 that incorporates additional quality requirements for the aerospace and defense industries. POSCO Air Solution said it is the first company in Asia to obtain the certification in the field of high-purity rare gas manufacturing.

In June, the company completed construction of a high-purity rare gas production facility at the Donghoan industrial site within POSCO’s Gwangyang Steelworks complex. The plant has an annual production capacity of 130,000 normal cubic meters (N㎥).

POSCO Air Solution recently participated in propulsion technology development testing conducted by the Korea Aerospace Research Institute, where the performance of domestically produced xenon (Xe) and krypton (Kr) gases was successfully verified for electric propulsion applications.

“The certification will serve as an opportunity to expand our supply of rare gases for aerospace and defense applications,” Chief Executive Officer Kim Dae-yeon said.

KT&G posted record first-half revenue, driven by strong growth in its overseas tobacco business, and raised its earnings outlook for the full year.

The company said on Aug. 6 that second-quarter revenue reached 1.70 trillion won, while operating profit increased to 414.5 billion won. Compared with the same period a year earlier, revenue rose 9.9% and operating profit grew 18.5%.

KT&G also revised its full-year guidance upward. The company raised its projected annual revenue growth rate to 5–7% from a previous forecast of 3–5%, while expected operating profit growth was increased to 10–13% from 6–8%.

The tobacco business remained the primary earnings driver, generating revenue of 1.22 trillion won and operating profit of 382.5 billion won during the quarter.

Revenue from overseas cigarette operations rose 18.9% year over year to 557.7 billion won. Operating profit from the business increased 45.6%, supported by higher sales volumes and improved selling prices.

In South Korea, KT&G maintained a cigarette market share of 67.9% during the first half.

The next-generation product (NGP) business also continued to expand. NGP revenue increased 23.8% from a year earlier to 242.7 billion won, driven by strong sales of the lil AIBLE 3.0 heated tobacco device. The company's domestic NGP market share reached 48.2%.

KGC, KT&G's health functional food subsidiary, reported operating profit of 10.0 billion won, up 61.3% from the previous year, supported by higher domestic sales.

KT&G also announced enhanced shareholder returns. Its board of directors approved an interim dividend of 2,000 won per share, up from 1,400 won a year earlier.

The company said it will proceed with previously announced plans to repurchase and retire treasury shares during the second half of the year. It also plans to unveil a new mid- to long-term shareholder return policy, including additional dividend measures, in the fourth quarter.

Shinheung SEC, a key supplier to Samsung SDI, is increasing production capacity for cylindrical battery components by 20% as demand for battery backup units (BBUs) used in artificial intelligence (AI) data centers drives a shortage of cylindrical batteries.

According to industry sources on Aug. 6, Shinheung SEC is expanding production facilities for cylindrical battery current interrupt devices (CIDs) at its Malaysian plant. Monthly production capacity will increase from 80 million cylindrical-cell components to 100 million units.

Shinheung SEC supplies 80% to 90% of the cap assemblies and core CID components used in Samsung SDI's cylindrical batteries. The company is the exclusive supplier for Samsung SDI's Malaysian cylindrical battery plant.

Batteries are generally categorized into cylindrical, prismatic and pouch formats. Cylindrical batteries consist of electrodes housed within a metal cylinder. The cap assembly serves as the battery's top cover and contains safety components such as the CID, a positive temperature coefficient (PTC) device that controls overcurrent, and a vent for gas release.

Among these components, the CID is a critical safety device that disconnects electrical current and releases internal gas when battery pressure rises, reducing the risk of explosion.

The expansion is being driven by Samsung SDI's growing cylindrical battery production. Malaysia serves as the company's main production base for cylindrical cells. Since 2022, Samsung SDI has invested approximately 1.7 trillion won to establish production lines for 2170 cylindrical batteries, which measure 21 millimeters in diameter and 70 millimeters in height.

Following the expansion, production and sales at the Malaysian battery plant initially fell short of expectations due to slowing demand in power tools and micromobility applications such as electric bicycles. However, market conditions have changed as demand for AI data center BBUs has surged.

BBUs provide emergency power for server racks in data centers. Because server environments require compact form factors and high instantaneous power output, high-performance cylindrical batteries are commonly used.

"Samsung SDI expanded its Malaysian production capacity first, but when output remained weak in the early stages, there was little need for suppliers to increase component capacity," an industry source said. "Recently, demand from AI data centers has risen sharply, significantly boosting cylindrical battery production, and Shinheung SEC is now accelerating facility expansion to keep pace."

Based on the supply capacity of Shinheung SEC's Malaysian operations, Samsung SDI's Malaysian plant is estimated to have annual cylindrical-cell production capacity exceeding 1.2 billion cells. Using an industry assumption that 100 million cylindrical cells correspond to roughly 2 gigawatt-hours (GWh), annual capacity is estimated at more than 24 GWh.

Samsung SDI Energy Malaysia (SDIEM) reported first-quarter revenue of 311.3 billion won this year, more than doubling from 142.0 billion won a year earlier. Annual revenue reached 1.06 trillion won last year, surpassing the 1 trillion won mark again for the first time since 2023.

Shinheung SEC's Malaysian subsidiary also posted strong growth. First-quarter revenue increased to 11.2 billion won from 2.6 billion won a year earlier. Revenue from its small cylindrical CID business rose from 11.0 billion won, representing 10.6% of total sales, in the first quarter of last year to 25.3 billion won, or 20.5% of total sales, in the first quarter of this year.

The company's earnings are expected to improve further beginning in the fourth quarter. Samsung SDI is scheduled to begin mass production of lithium iron phosphate (LFP) prismatic batteries for energy storage systems (ESS) in October at StarPlus Energy (SPE), its joint venture with Stellantis in Indiana.

Shinheung SEC will supply prismatic battery cap assemblies for those batteries. Prismatic cap assemblies are the company's core business, generating first-quarter revenue of 88.5 billion won, up about 6% from 83.5 billion won a year earlier.

The Korea IR Council projects that Shinheung SEC's operating profit will increase from 5.9 billion won in 2025 to more than 20 billion won in 2026, driven by expanding prismatic cap assembly shipments to SPE and rising demand for cylindrical battery components used in AI data centers.

Gaon Cable, a subsidiary of LS Cable & System, will participate in a Singapore Mass Rapid Transit (MRT) power infrastructure project for the first time.

The company said on Aug. 6 that it will supply approximately 60 billion won worth of distribution cables for an MRT power grid construction project commissioned by Singapore’s Land Transport Authority (LTA). The contract marks Gaon Cable’s first order since it was registered as an approved LTA vendor last year.

Singapore plans to expand its MRT network from approximately 240 kilometers today to more than 360 kilometers by the early 2030s. With new rail lines under construction and power infrastructure upgrades planned for existing routes, demand for distribution cables is expected to remain strong.

“We will continue increasing the share of overseas revenue by focusing on strategic markets such as the United States and Singapore, while improving both profitability and growth,” Chief Executive Officer Chung Hyun said.

LS Electric has begun mass production of its next-generation power conversion system (PCS) for energy storage systems (ESS).

The company said on Aug. 6 that it held a first-shipment ceremony for its next-generation ESS PCS, known as G2, at its DC Factory in Cheonan, South Chungcheong Province, on Aug. 5, marking the start of full-scale production.

The event was attended by Chairman Koo Ja-kyun and company employees. Koo toured the dedicated G2 production line and reviewed manufacturing plans and quality management operations.

G2 is a next-generation PCS developed for the global ESS market. The system incorporates liquid-cooling technology, improving thermal management performance and durability compared with conventional air-cooled designs. It also features a space-saving architecture designed to enhance installation efficiency.

The product will be manufactured at LS Electric’s Cheonan DC Factory, a facility operated entirely on direct current (DC) power distribution. The factory employs DC-based equipment, including solid-state transformers (SSTs), solid-state circuit breakers (SSCBs) and ESS infrastructure, improving overall energy efficiency by more than 10%, according to the company.

“Following the launch of mass production for our next-generation ESS PCS, we plan to further expand our presence in overseas markets,” an LS Electric official said. “We will secure global customers based on our competitiveness in DC technologies and product quality.”

Lotte Energy Materials plans to bring its Malaysian battery copper foil manufacturing operations to full production capacity by the end of this year.

The company reported second-quarter revenue of 194.2 billion won and an operating loss of 16.9 billion won on Aug. 6. Revenue increased 21.5% from the previous quarter, driven by higher sales of high-power small batteries, copper foil for North American energy storage systems (ESS), and circuit foil products.

Demand from battery backup units (BBUs) and high-power batteries used in power tools supported performance during the quarter. Sales of copper foil for North American ESS applications and circuit foil used in artificial intelligence (AI) substrates also remained solid.

Lotte Energy Materials plans to expand production capacity at its Malaysian facilities. The company began operations at its fifth Malaysian plant in July and intends to move forward the start-up of its sixth plant from next year to the fourth quarter of this year. It aims to transition its Malaysian operations to a fully operational production and sales system within 2026.

Demand for high-performance circuit foil is also increasing as investment in AI data centers accelerates. The circuit foil market is shifting away from products primarily used in conventional information technology devices toward higher-end offerings, including reverse-treated foil (RTF), high-voltage low-profile (HVLP) foil and ultra-thin copper foil.

The company said demand for non-China products is growing, particularly among customers in North America.

“We will respond to demand from the AI data industry through our portfolio of advanced circuit foil and battery copper foil products,” Chief Executive Officer Kim Yeon-seop said. “We will strengthen our production capabilities and pursue earnings growth.

HD Hyundai said on Aug. 5 that it has launched a pilot project aimed at improving productivity at Ingalls Shipbuilding in Mississippi.

The initiative is a follow-up to a memorandum of understanding (MOU) on advanced shipbuilding technologies signed with Huntington Ingalls during the Sea-Air-Space (SAS) 2025 exhibition in the United States last year.

As the first phase of the pilot program, HD Hyundai will introduce its proprietary intelligent welding system at the Ingalls shipyard. The technology has already been deployed at HD Hyundai Heavy Industries and HD Hyundai Samho.

The intelligent welding system automatically recognizes workpieces and welding conditions, enabling real-time adjustment of welding positions. A single operator can manage multiple welding robots simultaneously, while production data is collected and stored in real time for quality control and process optimization.

The two companies plan to expand cooperation across a broader range of shipbuilding activities, including production automation, development of digital shipyards using robotics and artificial intelligence, improvements in naval ship construction productivity, workforce training, and supply chain development for shipbuilding equipment and materials.

Joo Won-ho, president of HD Hyundai Heavy Industries, said the pilot project is expected to serve as a foundation for deeper collaboration between the two companies and help improve the efficiency of naval vessel construction.