Kim Hyun-bin began his journalism career at Arirang TV from 2012 to 2017, specializing in defense, foreign affairs and the economy. In 2018, he joined The Korea Times, covering society and business, and is currently responsible for embassy affairs.
SKC considers inking JV with Nexeon
SK Nexilis Jeongup copper foil plant in North Jeolla Province / Courtesy of SK Nexilis
By Kim Hyun-bin
By Kim Hyun-bin
SKC is speeding up efforts to team up with global players to become a leader in the mobility materials business.
The company is seeking to establish an joint venture with British silicon cathode production company Nexeon. The issue was brought up during the company's board of directors meeting Wednesday afternoon. Shares of SKC advanced 3.38 percent to end at 199,000 won on the KOSPI, Wednesday, according to the Korea Exchange (KRX).
The possibility arose after the group's battery affiliate ― SK Innovation (SKI) ― decided to invest more into its battery joint venture with Ford. Nexeon produces next-generation silicon cathodes for lithium batteries. The storage capacity of lithium-silicon batteries is 10 times larger than carbon fiber batteries.
SK Group technology affiliates, including SKI, SKC and SK Materials, are taking significant steps to achieve a “vertically-integrated” battery business structure. According to a recent UBS report, the size of the global electric vehicle (EV) market is expected to rise to 35.5 million units by 2030.
SKC said it will collaborate with affiliate SK Nexilis, which mainly manufactures copper foil, a key material in the production of lithium-ion batteries. SKC had a 22-percent global market share in that segment last year, according to market researchers.
“We plan to make 80 percent of profits from the mobility materials business by 2025 by entering new materials businesses such as battery cathodes and anodes and the world's first high-performance computing glass substrate business,” SKC said in its latest in-house event for investors.
According to sources familiar with the issue, despite its denial, SKC is also still considering a joint venture with Applied Materials (AMAT) to enter the gallium nitride (GaN) power semiconductor market. AMAT is the global leader in semiconductor equipment sales.
GaN power semiconductors shows strength under high voltage and extreme heat and can endure extreme conditions better than silicon semiconductors. Due to these traits, GaN power semiconductors are widely used in EV batteries, high-speed chargers and 5G communications equipment.
GaN semiconductors are also viewed as a key component to enhancing battery efficiency. They are being used in diverse fields including autonomous driving LiDAR systems, wireless charging, data centers and communications equipment. The creation of the JV with AMAT will help the Korean company increase annual sales to 1.8 trillion won by 2025.