W-Scope boosting separator output in South Korea

TOKYO -- Japanese battery component manufacturer W-Scope will ramp up production in South Korea amid the growing popularity of eco-friendly vehicles.

The maker will invest 10 billion yen ($82.9 million) to churn out more separators, key components for insulating positive and negative electrodes in lithium-ion batteries.

The Japanese company will first obtain two separator production lines from local company LG Chem. The equipment processes resin into thin sheets.

W-Scope will then build a new plant next to its existing factory in North Chungcheong Province, transferring the purchased equipment and starting operation there by June 2016.

Of the total investment, over 4 billion yen will be spent for the purchase and factory expansion. The remainder will be invested in two more production lines that the company aims to start operating during 2017.

Following the expansion, W-Scope's production capacity in South Korea will likely more than double to over 250 million sq. meters of separators per year.

LG Chem seems to have judged that it would be cheaper to concentrate its resources on the actual lithium-ion battery while outsourcing components. Japanese company Toray Industries will also buy a production facility from the South Korean company.

W-Scope, listed on the Tokyo Stock Exchange's Mothers market for startups, supplies separators to major overseas battery companies including LG group and the A123 Systems of the U.S. Japanese battery giants have also joined the list of its customers.

(Nikkei)