Enchem Acquires 'All-Solid-State Battery' Company... "Business Diversification"

Enchem, the leading domestic secondary battery electrolyte specialist, is diversifying its business areas by securing additional technology in the all-solid-state battery field, known as the "dream battery," and expanding into energy storage systems (ESS) utilizing this technology. On the 1st, Enchem announced through a public disclosure that it will acquire a 54.56% stake in TDL for 19.8 billion KRW.

TDL, acquired by Enchem this time, is a venture company specializing in the development of all-solid-state batteries and electrolytes for all-solid-state batteries, established in 2004. Located in Gwangju, TDL is recognized for having the highest level of technological competitiveness in the all-solid-state battery sector in Korea.

This investment is aimed at securing future battery electrolyte material technology and actively expanding business into the ESS field, in addition to Enchem’s current production of electric vehicle (EV)-focused products. Enchem is the largest domestic producer of electrolytes, a core material of secondary batteries, and ranks 4th in global market share.

By acquiring TDL, which possesses technological development capabilities for the commercialization of all-solid-state batteries, Enchem is creating an opportunity to further strengthen its research and development capabilities in the market. This move is expected to enhance the corporate image and enable diversification of the product portfolio once all-solid-state batteries are fully commercialized in the future.

All-solid-state batteries are next-generation secondary batteries that replace the separator and liquid electrolyte of currently commercialized lithium-ion batteries with solid electrolytes. Since all materials are composed of solids, they feature high energy density and ease of implementation in large capacities. Because the electrolyte that facilitates ion movement is also solid, the risk of battery fire and explosion is drastically reduced.

Previously, TDL developed its own all-solid-state battery products applicable to ESS and established production lines for them. It also became the first in Korea to register related products with the Public Procurement Service and obtain direct production certification. Since last year, TDL has been producing the mass-produced all-solid-state battery product "DUMU-6070150," with an annual factory production capacity reaching 80 MWh.

At the beginning of this year, TDL successfully unveiled the ESS module composed of all-solid-state batteries, the "TAM-Series," for the first time in Korea at "InterBattery 2023," the country’s largest secondary battery specialized exhibition held at COEX, Seoul. The first model, "TAM-500-1," is designed with a 7S (series) 5P (parallel) structure of 4Ah-class all-solid-state batteries and is equipped with a battery management system (BMS).

TDL is prioritizing the supply of all-solid-state batteries for ESS to Korea Electric Power Corporation and local governments by utilizing the demonstration exception system. It is also promoting the stable supply of batteries for defense applications under high temperature and high pressure conditions. Additionally, TDL plans to launch models for electric vehicles (EV) in the future.

Based on its excellent technological capabilities and product commercialization ability, TDL successfully attracted external investments from leading domestic institutions and large corporations such as the Korea Development Bank, KB Securities, POSCO, and UNID in 2019.

A company official stated, "This acquisition will create business synergies between the two companies, further strengthening TDL’s oxide-based all-solid-state battery development capabilities, which are its strengths, and will enable faster market penetration from a commercialization perspective. Compared to sulfide-based all-solid-state batteries, commercialization of oxide-based all-solid-state batteries, which are more suitable for small products, will proceed more rapidly."

Industry insiders also explained, "The current all-solid-state battery market is a high-growth, high value-added industry with clear technological entry barriers. Enchem’s acquisition of TDL, a strong player in the existing electrolyte production and supply in the secondary battery market where market preemption is crucial, carries significant implications."

Meanwhile, this acquisition is expected to accelerate TDL’s initial public offering (IPO), targeting listing in the first half of next year. Currently, TDL has selected Daishin Securities as the lead underwriter for the listing and is proceeding with a series of processes including applying for a technology evaluation for the IPO.

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