February 28, 2025: DN Automotive is expanding its lead battery manufacturing in South Korea by building a new plant under an agreement signed with the Busan metropolitan government.

The Korea-based global car parts and battery maker, part of the DN Group, said on February 20 it had agreed to invest KRW 440 billion ($31 million) in the 90,000m2 factory project in Busan’s E-Park industrial complex.

The total investment cost includes KRW 44 billion for the land purchase and KRW 398 billion for the construction, which is scheduled to start in August 2026.

DN Automotive did not disclose the planned production capacity of the plant. However, it said the facility would realize a significant expansion of existing battery manufacturing it already has in the region — at its Ulsan 1 and 2 factories about 60km to the northeast.

The company said the Busan plant would also boost its plans to become a leading player in the global battery market, having set an overall production capacity target of 10 million units annually by this year.

As of 2022, the firm said its battery business accounted for more than 90% of exports, with major customers including General Motors.

Busan mayor Heong-joon Park, pictured (left) after signing a memorandum of understanding for the investment project with DN Automotive chairman Sang-heon Kim, promised active administrative support from city authorities.

Batteries International reported last month that South Korea was scrambling to shore up the country’s faltering EV battery sector with an initial cash infusion worth close to $15 billion, as a global slump in electric vehicle sales was taking its toll on the industry.