JRX EnerTech 因询价激增而崛起为电池代工领导者

Oh Duck-geun, CEO of JRX EnerTech Solutions. (Photo: THE ELEC)

JRX EnerTech Solutions, a specialized battery foundry company, is accelerating its growth by targeting high-mix, low-volume battery markets such as energy storage systems (ESS), robotics and drones. Revenue surged over fourfold from 4.9 billion won in 2024 — the first year of plant operation — to 20.1 billion won last year. The company targets 32 billion won this year and aims for over 100 billion won next year.

JRX EnerTech Solutions focused on market segments with granular product specifications and diverse demands — areas difficult for major battery manufacturers to address via large-scale dedicated production lines. When battery fabless companies focus on product development, JRX EnerTech Solutions handles mass production, including electrode manufacturing and cell assembly.

The number of corporate clients seeking foundry services is growing rapidly. Currently, the company maintains clients including three automotive OEMs, South Korea's top three battery makers and approximately 40 battery fabless firms. Notably, five clients that collaborated from the development stage have transitioned into mass production.

Increased mass production volume directly led to capacity expansion. JRX EnerTech Solutions is currently operating its 500 megawatt-hour (MWh) electrode production line at its Eumseong plant in North Chungcheong Province at full capacity. By installing a 1.5 gigawatt-hour (GWh) second unit by the end of this year, total production capacity will expand to 2GWh by February next year. Cell assembly capacity will also expand from the current 100,000 cells to 300,000-400,000 cells.

Oh Duck-geun, CEO of JRX EnerTech Solutions, said, "This year served as the year we validated the foundry business model through client expansion, mass production conversion and technological diversification. As five development clients transitioned to mass production, we finalized the decision to expand production capacity."

The foundry's reach is also expanding into after-sales (AS) service batteries for electric vehicles (EVs). Even after an EV model is discontinued, replacement cells must be supplied during the warranty period. Because batteries cannot be stored long-term as inventory, they must be manufactured on-demand. Instead of restarting legacy production lines, major battery manufacturers can outsource this work to a foundry specialized in high-mix, low-volume production.

JRX EnerTech Solutions is currently negotiating AS battery production with South Korea's top three battery makers. One partner is reviewing approximately 100 projects for AS production conversion. By supporting production during the development stage of next-generation batteries and taking over AS volume after product discontinuation, the company is broadening its touchpoints with major battery makers.

JRX EnerTech Solutions plans to expand its domestic production capacity to at least 6GWh. As discussions progress regarding approximately 4GWh of volume with a U.S. ESS client, plans for additional investments near the Eumseong facility are accelerating. The company is also preparing for an initial public offering (IPO) to secure funds required for capacity expansion.

Oh added, "Based on our planned production capacity, we project achievable revenues of around 200 billion won, and we expect over 100 billion won to be feasible next year. We are preparing to submit our listing application in March 2027, targeting an official IPO in September of the same year."

Q&A

Q: Hello, this is Lee Soo-hwan from THE ELEC. Today, we are joined by CEO Oh Duck-geun of JRX EnerTech Solutions to discuss the latest updates on the battery foundry market and industry conditions. Hello, CEO Oh.

A: Hello, I am Oh Duck-geun, CEO of JRX EnerTech Solutions.

Q: We've been having regular check-ins throughout the year. Over the past few years, while the overall battery market has been expanding, domestic companies haven't captured that growth, leading to various industry issues. People talk about slowing EV sales, but looking at Tesla Model Y sales in Korea, that doesn't seem entirely true. Ultimately, the market is growing, but domestic firms failed to capture it. However, your battery foundry business wasn't targeting that main EV segment from the beginning, right?

A: When we launched the foundry business, our initial target focused on non-EV segments — specifically ESS, defense, drones and robotics, which are receiving tremendous attention right now. Ultimately, we are also looking at the EV market, but rather than mainstream production, our focus is on the AS market. When an EV is sold, the battery carries a 10-year warranty. Auto manufacturers and battery makers face a structural issue where they must continue producing cells throughout that 10-year window. Demand for someone to handle that operational burden is surging. The opportunity we see in the foundry market isn't the core mainstream market dominated by the top three battery makers, but the AS market — and those markets are opening faster than expected. We have already initiated discussions with domestic battery majors and auto OEMs regarding AS supply. The defining characteristic of the AS market is precisely high-mix, low-volume production, which aligns with our core focus.

Q: Exactly. AS volume doesn't ship at a constant pace, nor can inventory sit indefinitely.

A: Because battery capacity and quality degrade over time, you cannot produce and stockpile inventory; it must be manufactured on-demand. Major corporations excel at low-mix, high-volume manufacturing, whereas high-mix, low-volume production must be handled by a dedicated foundry. While we don't treat the main EV market as a primary focus today, we see long-term potential, and the target markets we identified are already opening up. The foundry business is growing much faster than we originally anticipated.

Q: Could you highlight a few of your representative client groups?

A: While I cannot mention specific client names directly, I can describe our primary client segments. First, we are engaged in foundry operations with automotive OEMs. Auto manufacturers are currently developing proprietary cell designs internally, and we provide foundry execution for those R&D efforts.

Q: Do these include domestic automakers?

A: Yes, both domestic and overseas automakers. Orders are steadily increasing, so we view this very positively. Our second client segment is South Korea's top three battery manufacturers. People often ask why major domestic battery makers — who possess massive capacity — would outsource foundry work to JRX EnerTech. We view our relationship with the top three through a two-stage lens: front-end and back-end. The front-end involves supporting their R&D. Previously, when the focus was strictly on high-nickel chemistry, they only developed high-nickel. Now, they must simultaneously develop lithium iron phosphate (LFP), sodium-ion and all-solid-state batteries. It is extremely difficult to process all these next-generation chemistries on existing R&D pilot lines, so they leverage us to accelerate development. That is the front-end. The back-end is the AS market I mentioned earlier. The relationship between major battery makers and a foundry isn't competitive — it's mutually complementary.

Q: For example, if LG Energy Solution has a line sitting idle to reduce fixed costs, restarting that factory just to produce a single month's worth of required cells incurs massive operational and manpower costs. Running it for one month and pausing again results in a net loss. Outsourcing that volume to JRX makes far more financial sense — and that calculation is driving the AS market.

A: Exactly. That market always existed, but it remained inactive because entering the automotive supply chain requires a foundry partner that is thoroughly vetted for reliability, scale, quality standards and financial stability. Historically, such players didn't exist, so the top three didn't look outside. Now that a competitive foundry player like JRX has emerged, they are actively pursuing it.

Q: As electric vehicles become mainstream, AS demand is compounding, and older EV models are accumulating. Outsourcing those runs is far more efficient than internal manufacturing.

A: Correct. Those legacy production lines are less efficient, run sporadically and consume valuable floor space. Battery majors want to decommission legacy lines and install new high-speed equipment. That operational need aligns perfectly with our capabilities, and formal discussions are now underway.

Q: Aside from automotive, what other major markets are you expanding into?

A: Our third core client segment consists of battery fabless companies.

Q: By fabless, do you mean emerging battery startups?

A: Emerging battery companies that focus heavily on core R&D and market development. What they lack is mass production capabilities. They often lack commercialization and mass manufacturing expertise, so our core foundry model centers on strategic partnerships with them. This client base is expanding rapidly.

Q: How many active clients do you currently have?

A: We have three automotive OEM clients, all three domestic battery majors and approximately 40 core battery fabless partners.

Q: That already totals nearly 50 clients. It sounds like your Eumseong plant is already operating at full capacity.

A: We are operating at 100% capacity. Our 500MWh cathode and anode lines are fully set up and running. Client demand is strong, and growth will accelerate next year. That is why we are currently preparing our second line.

Q: Will Line 2 be installed within the existing plant? What does the process layout look like? Are you referring to post-mixing processes?

A: The process layout is identical. We currently operate one complete set covering mixing, coating, pressing and slitting. We are bringing in an identical second set, but this line is specifically optimized for mass production. Line 1 was semi-automated for pilot-scale flexibility, whereas Line 2 is an automated mass-production line arriving at the factory by late this year. It will be fully operational by February next year and contribute directly to 2027 revenue.

Q: Combined, Line 1 and Line 2 will total 2GWh of capacity?

A: Correct. Our current capacity is 500MWh, and the new line adds 1.5GWh, bringing JRX's total production capacity to 2GWh by February next year.

Q: Is the 1.5GWh expansion allocated for EV mass-production clients?

A: It is not for EVs. This year served as the validation year for our foundry business model. First, our client base expanded past 50 companies. Second, clients that previously requested pure R&D are now transitioning into commercial mass production. That transition created the need for Line 2. Third, our technical portfolio diversified significantly. Specifically, five client projects successfully transitioned from R&D into full mass production, which justified adding the 1.5GWh capacity.

Q: So fabless clients that secured end-customers and required large cell volumes are now moving into mass production.

A: Exactly. Our core purpose is helping clients commercialize, mass-produce and sell the products they developed. We now have five clear success stories. Looking at their end-customers, these strategic clients manufacture specialized cells for ESS, logistics robots, drones and special-purpose IT/wearable devices. As they enter mass production, JRX is scaling its capacity to 2GWh to support them.

Q: Are there other client categories?

A: We also partner with battery material developers. Companies developing novel materials find it difficult to convince cell manufacturers using material samples alone. Consequently, many adopt a strategy of building complete cells first to prove performance in the market. Waiting for domestic battery majors or Chinese firms to adopt a new material takes years. To bypass that delay, material developers use JRX to manufacture complete cells containing their materials, selling them into specialized markets for rapid validation. Because they lack manufacturing infrastructure, they collaborate heavily with JRX.

Q: How are your revenue metrics trending?

A: We founded the company in December 2022 and officially brought the factory online in February 2024. In 2024, we prioritized operational stabilization over aggressive sales, recording 4.9 billion won in revenue.

Q: In 2024.

A: In 2025 — our first full year of commercial operation — revenue reached approximately 20.1 billion won.

Q: Passing 20 billion won means a fourfold increase year-over-year.

A: Yes, roughly fourfold growth. This year represents the full validation of the battery foundry model. Response from clients has been exceptionally strong, and as of August, our full-year 2026 revenue is virtually locked in at approximately 32 billion won.

Q: What about profitability?

A: Achieving early profitability in the battery industry is notoriously challenging. We posted net losses in 2024 and 2025, but we are executing a complete turnaround to profitability this year. We expect to post solid positive numbers.

Q: What operating margin are you projecting?

A: Ongoing capital investments generate substantial depreciation expenses, making high margins difficult in the short term. However, we are targeting an operating profit margin of approximately 10% this year, and we expect to hit that target.

Q: Looking back over the past year, JRX signed numerous corporate partnerships, including Scandinavian newcomer Morrow Batteries and Australia's 1414 Degrees. Which partnerships stand out as the most significant?

A: Collaboration is the foundation of our business model, and our partnerships fall into three main categories.

First are client partnerships. We have established formal MoUs with key front-end clients like Amprius, Nyobolt and ElectroActive, and we have moved past initial MoUs into concrete negotiations for mass production volumes.

Second are material suppliers, such as 1414 Degrees and Norwegian synthetic graphite maker Vianode.

Third is a novel model: leveraging idle global production capacity. Morrow Batteries was our first partnership in this category. As European battery firms faced operational hurdles after building gigafactories, idle capacity emerged. We initiated discussions to utilize those facilities on behalf of JRX's client base. At the end of September, a major French manufacturing firm will visit our facilities to sign an MoU focused on JRX utilizing their idle production lines.

Q: So based on your track record of rapidly stabilizing your plant, these global firms are asking JRX to help stabilize and run their gigafactories?

A: It's a slightly different strategic approach. They want JRX to route our client orders into their facility to utilize their idle capacity. From our perspective, while we continue investing domestically, our footprint is currently limited to South Korea. Rather than spending capital to build new plants in Europe, we use these partnerships as our European operational hubs.

Q: It functions almost like a "foundry for foundries."

A: Exactly — a foundry for foundries. Directly committing capital expenditure (CAPEX) overseas requires immense capital, time and complex European permitting processes. Partnering allows us to bypass those hurdles. Our global strategy centers on our Eumseong facility, which will expand to 2GWh, while we actively discuss a roughly 4GWh project with a U.S. ESS client.

Q: Regarding the 4GWh project, plans for a second domestic site near Eumseong are taking shape.

A: Timeline planning is accelerating, and we are evaluating site options simultaneously. We plan to hold at least 6GWh of internal capacity in South Korea. In Europe, however, we won't build from scratch. While shipping cells from Korea is an option, leveraging local idle capacity through strategic partners allows us to enter the European market far faster and more capital-efficiently.

Q: Since the battery foundry concept emerged, making prototype or R&D cells has always been possible. But when major players like Morrow or this French firm approach you for large-scale production, have domestic battery makers shown similar interest in handing over legacy fabs to JRX?

A: Domestic large enterprises operate under complex decision-making frameworks. For us to take over and operate an existing domestic site, managing onsite personnel, labor unions and corporate culture introduces significant operational friction, which slows down corporate decision-making. We presented aggressive proposals, but internal approvals stall. Overseas firms like Morrow or the French firm actively seek us out, whereas in Korea, we are the ones initiating proposals. While domestic executives acknowledge it as a great concept, execution remains complex.

Separately, taking over gigawatt-scale electrode lines incurs high operational costs if the site isn't fully decoupled from adjacent facilities. Domestic sites are tightly integrated. So while the strategic logic makes total sense —

Q: Even battery majors acknowledge the business logic.

A: They like the concept very much and actually initiated early discussions. We submitted formal proposals, but final approvals hit corporate administrative roadblocks. While discussions are currently paused, we believe domestic partnerships will eventually materialize.

Q: JRX's core business model is now thoroughly validated. With global cell makers seeking mass-production partnerships, what is your outlook on the broader battery market next year and beyond?

A: In the short term, our target markets are growing rapidly. ESS, robotics and drones are expanding fast. Although these represent high-mix, low-volume segments that seem small to major battery manufacturers, this market is being actively built by foundries like JRX and fabless developers. We project sustained, strong growth here.

Regarding the mainstream EV market, recovery will take time. While global market demand continues to grow, Korean battery makers face intense competition from Chinese suppliers. Meanwhile, market adoption in the U.S. has slowed down due to policy uncertainties surrounding the Trump administration. Industry consensus points toward a broader EV recovery around 2028-2029.

That is why our short-term strategy focuses heavily on non-EV sectors. These markets exhibit intense demand and short sales cycles. Unlike automotive projects that require two to three years of development and validation before generating revenue, non-EV projects translate into immediate orders. For the mainstream EV market, we are positioning ourselves around the AS replacement segment, which offers virtually uncapped growth potential. For instance, one major Korean battery maker we are negotiating with has roughly 100 legacy projects slated for AS production conversion.

Q: Because early-generation EVs are accumulating on roads.

A: Exactly. LG Energy Solution first supplied automotive batteries for the Chevy Volt back in 2008 — nearly 20 years ago. As vehicles age and models are discontinued, maintaining replacement cell supply becomes a major operational burden for automakers and battery firms. That is why our foundry outlook remains exceptionally bright.

Q: To wrap up, what are your key operational targets for next year, and what is your timeline for the upcoming IPO?

A: This year marked the successful validation of our foundry model. Next year will focus on scaling up that model — expanding market share and revenue.

Our 2026 revenue target is roughly 32 billion won, where revenue was strictly capped by physical capacity. Now, electrode capacity is expanding from 0.5GWh to 2GWh. We are also upgrading our cell assembly capacity from 100,000 cells to 300,000-400,000 cells by February next year. As production capacity quadruples, revenue will naturally scale.

Q: Mathematically, scaling capacity from 0.5GWh to 2GWh represents a fourfold potential increase.

A: At full utilization, that capacity translates to roughly 200 billion won in potential revenue. For next year, we are targeting over 100 billion won in revenue. This isn't an internal estimate — it is backed by major purchase orders (POs) scheduled for delivery by late this year from clients transitioning to mass production. Based on those POs, 100 billion won is fully achievable next year.

Q: What is your timeline for the IPO?

A: The IPO is a key milestone in our long-term growth strategy, primarily designed to raise public capital for major expansion opportunities. Beyond our existing Eumseong expansion, we are evaluating capital requirements for a 4GWh project and a 1-million-cell assembly line dedicated to drone battery production.

Starting next week, we are hosting a series of roadshows with Shinhan Securities for existing shareholders to disclose our IPO roadmap. Our target is to submit our formal IPO application in March 2027, with a target listing date in September 2027.

We selected lead underwriters back in November 2025 and have spent the past year establishing internal control systems, financial and accounting compliance, management infrastructure and corporate governance structures required for a public listing. While some internally questioned listing during a broader battery market downturn, our strategy is different: rather than relying on market hype, we intend to prove that our unique foundry model delivers stellar financial results even during industry downturns. We remain fully committed to submitting our application in March 2027 and listing in September 2027.