SK Materials Group 14 Leads the Next-Generation Battery Materials Industry

Establishment of Silicon Anode Material Production Plant in Sangju and Full-Scale Entry into Next-Generation Battery Material Industry
Investment Agreement of 850 Billion KRW Signed with Gyeongsangbuk-do and Sangju City

[Asia Economy Reporter Hwang Yoon-joo] SK Materials Group14 (tentative name) and SK Materials are joining hands with Gyeongsangbuk-do and Sangju City to make an investment worth 850 billion KRW to secure leadership in the next-generation battery materials industry.

On the 14th, SK Materials Group14 (tentative name) and SK Materials announced that they signed a Memorandum of Understanding (MOU) regarding an investment agreement for the establishment of a silicon anode material and raw material production plant.

Through this MOU, the joint venture plans to establish a next-generation silicon anode battery material production plant on the site of the Sangju Cheongri General Industrial Complex. The first plant is scheduled to break ground in October, with commercial production starting in 2022, followed by further expansion through additional capacity increases. The total investment is expected to be 550 billion KRW. Additionally, SK Materials plans to invest 300 billion KRW in establishing a plant and purchasing land to produce silane (SiH4), the main raw material for silicon anode materials, in line with the joint venture’s expansion.

“Silicon anode material” is attracting significant attention as a next-generation battery material because it improves driving range and reduces charging time compared to the currently widely used “graphite anode material” in electric vehicle batteries. It is also lightweight and compact, making it suitable for IT devices such as mobile phones and tablets that require convenience and longer usage times, as well as small aircraft like drones.

In particular, the joint venture’s product (SCC55™) addresses the issue of lifespan reduction caused by volume expansion, a common problem with existing silicon anode materials, by minimizing volume expansion through silicon deposition within a porous carbon support. This has dramatically improved charge/discharge capacity, initial efficiency, and lifespan. Currently, evaluations are underway with over 30 customers including battery manufacturers, electric vehicle companies, home appliance makers, and IT firms, with discussions on mass production supply planned for after 2022.

According to market research firm SNE Research, silicon anode materials are a highly promising industry with market demand expected to grow at an average annual rate of about 70% until 2025, and demand is projected to surge to over 200,000 tons by 2030. In particular, the proportion of electric vehicle batteries aiming to secure sufficient driving range is expected to increase significantly.

Meanwhile, the joint venture and SK Materials plan to ensure the safety of the Sangju local community and citizens. To this end, they will secure the highest level of equipment safety at each stage of installation and operation and apply SK Materials’ safety technology know-how, including the establishment of an ICT solution-based human error prevention system, to the new plant. Going forward, SK Materials plans to expand its battery materials business area by linking with SK Corporation’s battery business direction to include high value-added cathode materials and high-performance anode auxiliary materials such as CNT (carbon nanotube) conductive agents, binders, and additives.

Lee Yong-wook, President of SK Materials, stated, “The joint venture and SK Materials will enhance the status of ‘K-battery’ materials in the global market by expanding the industry not only with silicon anode materials but also with various battery materials through active investment and technology development.”

Meanwhile, the joint venture will be established within September with a total capital of 77.2 billion KRW, with SK Materials and Group14 Technology holding 75% and 25% stakes respectively. Group14 Technology is a battery materials company holding technology and patents related to silicon anode materials, headquartered in Seattle, USA.

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