Ningbo Ronbay New Energy Technology is set to invest a substantial CNY 2.6 billion (equivalent to $362 million) in the construction of two state-of-the-art battery materials factories in Chungju, South Korea. This ambitious move is aimed at meeting the growing demands of South Korea’s thriving battery industry and, more importantly, expanding Ronbay’s global presence.
One of these factories, with a significant budget of CNY 1.99 billion ($273.2 million), will specialize in the production of high-nickel ternary cathodes, boasting an impressive annual output capacity of 40,000 tons. Interestingly, this facility will be established by Ronbay’s South Korean subsidiary, JAESE Energy.
On the other hand, the second plant, with a budget of CNY 642 million ($87.9 million), will focus on the production of lithium ferromanganese phosphate cathodes, capable of producing up to 20,000 tons annually. What sets this project apart is the fact that it will be executed by a Chinese subsidiary based in South Korea, wherein Ronbay holds a substantial 68.2 percent stake.
Lithium ferromanganese phosphate cathodes offer notable advantages, including higher energy density and superior performance at low temperatures when compared to the more commonly used lithium iron phosphate cathodes. Remarkably, this will mark the inaugural large-scale production facility for this cathode material by a Chinese company on foreign soil.
Ronbay’s strategic vision extends beyond South Korea, with ambitious plans to establish a global presence in key markets such as Europe, North America, and Japan. The company’s unique advantage lies in its amalgamation of Chinese and South Korean management teams, which affords it an intimate understanding of the business culture and legal landscape in South Korea.
This South Korean positioning also grants Ronbay a strategic advantage in terms of international trade. South Korea enjoys zero tariffs on exports to Europe and the United States, a stark contrast to the 25 percent and 6 percent tariffs that Ronbay’s China-based plants face when exporting to the US and Europe, respectively, as detailed in its 2022 annual report.
As part of its forward-looking strategy, Ronbay has identified three pivotal types of cathode materials for future focus: high-nickel ternary, lithium ferromanganese phosphate, and sodium-ion cathodes. Additionally, the company intends to promote its proprietary battery, the M6P, which ingeniously combines ternary and lithium ferromanganese phosphate cathodes, in international markets.
Already a player in the South Korean market, Ronbay currently produces 20,000 tons of high-nickel ternary cathodes and 6,000 tons of precursor materials annually. Recent developments have seen the Saemangeum Development and Investment Agency granting Ronbay approval to significantly ramp up its yearly production of ternary precursors and supporting sulfate materials, with a target of 80,000 tons each. This move solidifies Ronbay’s commitment to pioneering innovations in the battery materials sector on a global scale.