SM Vexcel battery unit seals 6th consecutive dispute-free labor deal

SM Vexcel's battery division has concluded this year's wage and collective bargaining negotiations without a labor dispute, extending its unbroken streak of dispute-free settlements to six consecutive years since 2021. With negotiations wrapped up, the company plans to stabilize production of its core battery products — including defense-use cells — and expand into new business areas.

The battery division held a signing ceremony for the 2026 wage and collective bargaining agreement at its headquarters in Gumi, North Gyeongsang Province, on Wednesday. CEO Choi Se-hwan and union chairman Ahn Hyo-yong attended, along with other labor and management representatives.

The division has reached its labor agreement without strikes or disputes for six straight years since 2021. Throughout that period, management and labor have maintained their focus on production and operational stability while holding ongoing discussions on working conditions and employee welfare.

The company attributed the long run of dispute-free outcomes to consistent on-site communication and sustained dialogue between labor and management.

With the agreement in place, SM Vexcel said it will direct greater energy toward production operations. The company plans to maintain stable output of key products such as lithium ampoule batteries for the defense industry while deepening cooperation with existing customers.

Lithium ampoule batteries are among the specialty cells SM Vexcel has been expanding into in recent years. In February, the company made its first delivery of lithium ampoule batteries — used in the 230-millimeter unguided rockets of the Chunmoo (K-239) Korean multiple-launch rocket system — to Korea Defense Industry (KDI).

SM Vexcel is also broadening its battery business. Last month, the company established a Battery Pack Solutions Team within its technology research institute and began developing high-performance battery packs and battery management systems (BMS) for industrial drones and robots. The goal is to develop and commercialize battery packs tailored to specific applications, from drones to humanoid robots.

"Because labor and management have embraced each other on the basis of strong solidarity and mutual understanding, we have been able to reach successful agreements for six years with little disagreement," CEO Choi said. "We will work even harder to ensure that the spirit of partnership between labor and management, and the hard-won results of dispute-free settlements, take firm root as a defining part of our organizational culture."