[Special Stock] Inox Fully Joins Secondary Battery Value Chain... Aggressive Expansion of Silicon Anode Materials

[Asia Economy Reporter Hyungsoo Park] Inox is showing strong performance. It appears that securities firms' analysis, which suggests that the secondary battery silicon anode material market will grow and benefit the company, is influencing the stock price.

As of 9:08 AM on the 4th, Inox is trading at 25,750 KRW, up 12.69% from the previous day.

KB Securities analyzed that Inox's subsidiary, TRS, has officially entered the secondary battery value chain.

In June 2020, Inox incorporated TRS, a manufacturer of metal silicon and Si powder for secondary battery anode materials, as a subsidiary. It holds a 63.8% stake.

In the first quarter of this year, Inox recorded sales of 20.5 billion KRW and an operating profit of 6.8 billion KRW, representing increases of 30.9% and 46% respectively compared to the same period last year. It also received approximately 1.7 billion KRW in dividends from Inox Advanced Materials last year.

Hyungkyum Kim, a researcher at KB Securities, stated, "Attention should be paid to the growth potential of the subsidiary TRS," and explained, "Recently, in the investment industry, silicon anode materials have emerged as an alternative that can meet the demands for extended electric vehicle driving range and fast charging."

He added, "Tesla plans to increase the proportion of silicon additives in the anode material of cylindrical batteries from the current 5-8% to 20% within five years," and predicted, "With the increase in electric vehicle sales and the expansion of the Si additive ratio in anode materials, related sales will surge."

Furthermore, he analyzed, "Mass production for delivery to global customers started in June," and "More than 40 tons will be supplied to Panasonic in June, and 80 tons per month from July to September." Additional supply expansion is also under consideration. Production capacity is expected to be aggressively expanded until 2025.

Currently, the Si powder facility for secondary batteries has a monthly capacity of 100 tons, with plans to increase this by 2 to 3 times by the end of the year. Expansion to approximately 1,400 tons per month is planned by 2025. Funding for facility investment will be raised through capital increases and an initial public offering (IPO) in the second half of 2024.

However, researcher Kim cautioned, "There are concerns about economic uncertainty due to recent interest rate hikes and external uncertainties such as the Russia-Ukraine war."

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