Hanwha Total Accelerates Production of High-Value Battery Separator Materials

Completion of Ultra-High Molecular Weight Polyethylene Production Facility Expansion for Secondary Battery Separator Materials
Investment of 40 Billion KRW, Securing Annual Production Capacity of Up to 140,000 Tons
Successful Commercial Production with Proprietary Technology... Accelerating Market Leadership in Secondary Battery Separator Materials

[Asia Economy Reporter Hwang Yoon-joo] Hanwha Total is overcoming the sluggish petrochemical market caused by the novel coronavirus disease (COVID-19) by expanding the production of high value-added synthetic resins.

Hanwha Total announced on the 7th that it has completed the expansion of its ultra-high molecular weight polyethylene (UHMWPE) facility used as a battery separator material at its Daesan plant in Chungnam and has started full-scale commercial production. With an investment of approximately 40 billion KRW, Hanwha Total has secured an annual production capacity of up to 140,000 tons of UHMWPE through this expansion.

In addition, Hanwha Total carried out this expansion by partially supplementing its existing high-density polyethylene (HDPE) production plant, establishing a system that can flexibly produce various products in parallel according to market conditions and product demand.

Ultra-high molecular weight polyethylene (Very High Molecular Weight Poly-Ethylene) is a high value-added synthetic resin product that improves mechanical strength by increasing the molecular weight compared to conventional polyethylene products and is gaining attention as a material for secondary battery separators.

The core technology of secondary battery separator materials lies in separating the cathode and anode substances inside the battery while allowing lithium ions that generate electricity to pass through consistently. This also determines the battery's performance and lifespan.

It is a product with high technical barriers that must meet stringent quality requirements such as durability, heat resistance, and chemical resistance, and production is only possible based on proprietary catalysts and process technologies, with only a few domestic and international companies dominating the market.

In particular, Hanwha Total succeeded in commercial production of UHMWPE in 2019 using purely proprietary technology by applying its self-developed catalyst technology and production process. Amid the trend of thinning separators due to the high capacity of secondary batteries, it is attracting attention for developing materials that increase strength compared to existing products, facilitating thinning.

The global polyethylene market for secondary battery separator materials is currently formed around China, Japan, and Korea with a scale of about 70,000 tons. However, due to the continuous expansion of new renewable energy industries such as electric vehicles, ESS (Energy Storage Systems), and solar power, demand is expected to grow at a high rate of over 30% annually.

Hanwha Total plans to reorganize its synthetic resin business to secure scale competitiveness and focus on high value-added product production. At the same time, it aims to expand its core business group, which is concentrated on base chemicals such as styrene monomer (SM) and paraxylene (PX), into the synthetic resin business to establish a foundation for stable profitability despite volatility in the petrochemical market.

A Hanwha Total official said, "The expansion of the ultra-high molecular weight polyethylene production facility is a proactive response to the expansion competition among petrochemical companies centered on China and North America and new growth markets such as secondary battery materials." He added, "We will expand the proportion of high value-added synthetic resin products and continuously improve plant operational efficiency to secure competitiveness."

This content was produced with the assistance of AI translation services.