Jaewon Industrial to win $224 mn investment from STIC Investments

[Courtesy of Jaewon Industrial]

South Korea’s Jaewon Industrial Co., a major player in the production of electric vehicle (EV) battery materials, is set to secure a 300 billion won ($224 million) investment from Korean private equity fund (PEF) STIC Investments as part of its plan to expand overseas operations.

According to sources on Tuesday, Jaewon Industrial recently selected STIC Investments as the preferred negotiator for the pre-IPO investment.

Both parties are expected to sign a memorandum of understanding (MOU) soon to formalize the investment agreement.

Jaewon Industrial had earlier attracted significant interest from major South Korean PEFs, including MBK Partners, STIC Investments, Affirma Capital, who competed to participate in the investment. Jaewon Industrial, through its lead investment manager Samil PwC, distributed teaser letters and gauged interest among potential investors.

The decision to choose STIC Investments was based on a comprehensive evaluation of investment size, terms, and the long-term potential as a business partner.

Jaewon Industrial has recently expanded its business into the high-demand field of secondary batteries, which are widely used in EVs. Secondary batteries are rechargeable and made up of cathode and anode electrodes, as well as an electrolyte, a separator, and a container.

Jaewon Industrial is known to have secured a leading position in the industry for its binder solvent (N-methyl-2-pyrrolidone or NMP) recycling business, further establishing its credentials as a key player in the EV battery materials industry.