Lotte Chemical Becomes Second Largest Shareholder of 'Standard Energy'... Enters Next-Generation ESS Market

Lotte Chemical to Supply Electrolyte, a Key Material for Vanadium Ion Batteries
Lotte Chemical Actively Pursues Entry into High-Performance and Battery Material Sectors

[Asia Economy Reporter Hwang Yoon-joo] Lotte Chemical is making a full-scale entry into the next-generation energy storage system (ESS) market by becoming the second-largest shareholder of 'Standard Energy,' a vanadium-ion battery manufacturer.

On the 6th, Lotte Chemical announced that it secured about 15% of the shares in 'Standard Energy' (an investment of approximately 65 billion KRW), becoming the second-largest shareholder.

Standard Energy, in which Lotte Chemical invested, is a battery-specialized company established in 2013 by researchers from KAIST and the Massachusetts Institute of Technology (MIT) in the United States. It is the world's first research and manufacturing company to develop vanadium-ion batteries. Unlike lithium-ion batteries, vanadium-ion batteries use water-based electrolytes, fundamentally eliminating the risk of fire. Based on high stability and excellent durability, they enable high efficiency and high output, and are attracting attention as the next-generation battery for energy storage systems (ESS) expected to grow in various fields such as industrial and residential use.

Lotte Chemical has been researching secondary battery materials for ESS, such as vanadium and zinc flow batteries, since 2011, and has been preparing for the electrolyte business for vanadium-ion batteries since 2019. Through this collaboration, both companies plan to expand strategic synergies and also consider expanding businesses utilizing Lotte Group and Lotte Chemical's domestic and overseas networks, including electric vehicle (EV) charging stations, urban air mobility (UAM), and renewable energy utilization projects.

The global ESS battery market size is expected to grow to about 120 trillion KRW (approximately 106 billion USD) by 2026. Demand for batteries that complement the shortcomings of existing batteries and have characteristics suitable for ESS is increasing, and the need for ESS to stably accommodate variable power sources such as solar and wind power is expected to gradually grow.

Hwang Jin-gu, Head of the Basic Materials Business Division, said, "In a carbon-neutral society, it is necessary to create an environment where renewable energy such as solar and wind power can be safely stored and used." He added, "Lotte Chemical will actively prepare for the era of global technological competition by making proactive investments and establishing cooperative relationships with advanced technology companies in preparation for carbon neutrality and the entry into a hydrogen society."

Meanwhile, Lotte Chemical is actively pursuing entry into the high-function and battery materials sector, along with strengthening the competitiveness of its existing petrochemical business. In May 2021, it decided to invest about 210 billion KRW to build production facilities for EC and DMC, organic solvents for electrolytes used in electric vehicle batteries, at the Daesan plant, aiming for completion in the second half of 2023. In addition, it plans to grow the separator material business, one of the four major battery materials (cathode/anode/separator/electrolyte), to 100,000 tons and 200 billion KRW by 2025.

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