Allday Organic Expands Production Capacity Fivefold, Cuts Power Costs with Used-Battery ESS

[Financial News]  Allday Organic, an AI-based functional natural pet food company, plans to install an energy storage system (ESS) using used electric-vehicle batteries at its new Gimpo plant, where it has expanded production capacity (CAPA) by more than fivefold. The strategy is to absorb the increase in power consumption resulting from the plant expansion with a battery-reuse ESS and lower manufacturing costs.
According to Allday Organic on the 1st, the company signed a memorandum of understanding (MOU) with PMGROW to cooperate on the Reuse ESS business.
The two companies plan to build an ESS using batteries recovered from electric vehicles that still have useful life remaining and apply it at Allday Organic's new Gimpo plant. PMGROW will provide the ESS equipment and cooperate on its installation, operation, and maintenance, while Allday Organic will provide the installation site. Specific arrangements regarding cost sharing and profit distribution will be finalized through a separate agreement later.
The key focus of the partnership is reducing energy costs in line with the recently completed expansion of production facilities.
Last September, Allday Organic completed construction of its new Gimpo plant on a site of approximately 800 pyeong, with a building covering about 400 pyeong. The company plans to expand its daily production capacity to more than 1 ton by installing automated raw-material blending and low-temperature oven-baking equipment. This is more than five times the previous level.
As production capacity expands, power demand is also expected to rise. The company plans to use the ESS to improve power-use efficiency and reduce costs. This will help manage the increase in fixed costs following investment in new equipment while also securing the resource-circulation benefits of reusing used batteries.
PMGROW operates a battery circular-economy business spanning battery-pack production, remaining-life assessment, battery management systems (BMS), and reuse ESS solutions. Starting with the Gimpo plant, the two companies are also considering expanding the application of Reuse ESS to local industrial sites and other locations.
An Allday Organic official said, "As the new plant's production capacity has increased significantly, energy efficiency and cost management have also become important." The official added, "Through the introduction of Reuse ESS, we plan to improve the efficiency of our production infrastructure while establishing a resource-circulating manufacturing base."
[email protected] Kim Kyung-a Reporter