Korea Tobacco Signs Contract With Battery Technology Company To Mass-produce 4 Export-oriented Heated Tobacco Devices By 2025

Korea Tobacco signs contract with battery technology company to mass-produce 4 export-oriented heated tobacco devices by 2025

Korea Tobacco has signed a contract with a local battery technology company to develop and supply four new heated tobacco devices in 2025, with sales growth expected to be more than double that of 2024.

According to a report by N.News on January 3, ITM Semiconductor Co..Ltd (hereinafter referred to as "ITM Semiconductor"), a Korean secondary battery protection circuit technology company, announced that it has signed a new heated tobacco product development service contract with Korea Tobacco (hereinafter referred to as "KT&G"). According to the contract, ITM Semiconductor is expected to supply KT&G with four devices including export strategic models in addition to the "Lil Hybrid" currently in mass production in 2025.

The newly developed heated tobacco device model is an export-specific model. If mass production is carried out as planned, additional sales are expected to start in the second half of 2025. ITM Semiconductor expects that its heated tobacco sales growth rate will be more than twice that of 2024.

During the contract period, multiple stages of work will be carried out, including development verification, trial production verification and mass production verification. It is planned to start mass production in 2025 and achieve large-scale supply by 2026.

Baek Cheol-seung, director of the Future Business Division of ITM Semiconductor, said, "The global heated tobacco market is currently growing rapidly, and we are preparing to supply products to customer companies at the right time and place. In the future, we will establish a system that can produce diversified heated tobacco through continuous technological development." It is reported that ITM Semiconductor was established in 2000 and is a Korean company that produces mobile phone battery protection circuits. In 2022, the company began to produce heated tobacco equipment and cartridges. Due to the recognition of large-scale battery technology, the company will also expand its business to the defense industry.