Key Points
- Kumyang’s 4695 cell offers a 44% greater range than Tesla’s 4680, with production planned for June 2025.
- The Gijang plant is projected to produce 12.6 GWh of 4695 cells annually, enough to power up to 216,000 EVs.
- Kumyang faced penalties after revising projected profits from a Mongolian mining project.
- Subsidiary SMLAB’s IPO was delayed due to concerns about financing for a cathode material plant.
South Korean battery manufacturer Kumyang introduced the 4695 cylindrical battery cell at InterBattery 2024 in Seoul, boasting a 44% higher range than Tesla’s 4680 battery. The 4695 cell can reportedly generate up to 75 kWh from 600 cells, translating to about 600 kilometers of driving range, compared to the 52 kWh and 416 km offered by Tesla’s 4680 battery cells. Kumyang plans to begin mass production of the 4695 cell by June 2025, with its upcoming facility in Gijang, Busan, expected to produce 12.6 GWh annually—enough for 216,000 electric vehicles.
Despite this promising technology, Kumyang has encountered significant challenges in recent months. In October, the Korea Exchange (KRX) designated Kumyang as an “unfaithful disclosure corporation” after it revised its profit projections from a Mongolian mining venture. Originally estimating around 402.4 billion won ($292 million) in revenue, the firm later corrected this to just 6.6 billion won. This discrepancy led to a fine of 200 million won and 10 demerit points from KRX, casting doubt on the company’s financial transparency.
Further complicating Kumyang’s financial standing, its subsidiary SMLAB—focused on cathode active materials—faced delays in its initial public offering (IPO) due to questions over the stability of its financing for a new plant. The Korea Exchange declined SMLAB’s IPO application, adding to the financial uncertainty surrounding Kumyang and its ventures in the battery industry.
In response to these setbacks, Kumyang’s CEO and largest shareholder, Ryu Gwang-ji, apologized on behalf of the company and pledged to improve business practices. To demonstrate his commitment to revitalizing shareholder value, Ryu donated 10 million shares in a bonus issue to Kumyang, a move valued at 415 billion won based on recent share prices.
Additionally, Kumyang announced a third-party share allotment to raise 300 billion won. This debt-equity swap with Ryu and his affiliated companies will reduce Kumyang’s debt, which was reported at 430% of equity by mid-2024. This restructuring is intended to stabilize Kumyang’s finances and ensure the completion of its secondary battery production facility in Busan, which is now 73% complete.
