● Held BOD meeting on Nov. 1st and decided to form a consortium with SJL Partners and BNW Investment to invest in Nexeon, UK
● Following the commercialization of glass substrates last week, SKC declared to embark on the anode material business, accelerating execution of its Financial Story
● To maximize synergy with the copper foil business and provide differentiated mobility material solutions that customers want
SKC (CEO Lee Wan-jae) is promoting in full force the business of silicon anode material, the next-generation material for rechargeable batteries, which improves the mileage and charging speed performance of electric vehicles. The material is in the initial stages of commercialization. SKC is promoting new businesses such as silicon anode material business in earnest, accelerating the execution of its “Financial Story,” the company’s growth strategy for the next five years.
SKC held a board meeting on the 1st and decided to invest US$33 million in Nexeon, a British silicon anode material technology company, by forming a consortium with private equity fund managers SJL Partners and BNW Investment. The three companies will make a total investment of US$80 million, with the SKC-BNW consortium investing 51% and SJL Partners 49% in the consortium through recruited investors. The main operator of the consortium, SKC will secure a portion of Nexeon's stake and business rights for silicon-carbon composite anode material technology when related procedures such as the business combination reporting are completed.
In September, SKC held 'SKC Investor Day' and unveiled its Financial Story focusing on rechargeable battery materials including next-generation anode materials and cathode materials and semiconductor glass substrates for high performance computing. Last week, SKC decided to commercialize glass substrates, a new material that it has developed for the first time in the world followed by the specification of its entry into the silicon anode material business, which is the next-generation material for rechargeable batteries, speeding up its execution of the Financial Story.
Silicon anode material is mixed with existing graphite anode material. The higher its content, the better the EV mileage and the rechargeable battery charging speed performance. The market outlook is bright. According to a market research institute, the size of the silicon anode material market is estimated to grow from US$400 million in 2020 to US$2.9 billion in 2025 and $14.6 billion in 2030. The material is divided into low content (within 15%) and high content (more than 15%) depending on to the silicon content in the anode. Currently, low-content products are in the early stage of commercialization.
A technology startup established in 2006, Nexeon has secured technology required to mass-produce silicon anode materials in a brief period of time with outstanding competitiveness in both price and performance. Most notably, SKC is equipped with the most important patents related to silicon anode materials. For such unrivaled competitiveness, SKC is receiving lots of invitation from major electric vehicle and battery manufacturers.
SKC plans to enter the silicon anode material market by combining its long-established global mass production and marketing capabilities with Nexeon's differentiated technology. First, SKC will independently commercialize low-content products and make inroads into the global market, and then commercialize high-content products in a joint venture with Nexeon in keeping with the pace of the market growth.
In addition, SKC plans to provide differentiated solutions to customers by maximizing synergy with SK nexilis, which has the world's best copper foil manufacturing technology. SKC will be able to provide superior mobility material solutions to customers by increasing the proportion of silicon anode materials through the utilization of high-strength and high-elongation copper foil technology that withstands the volume expansion of silicon anode materials, among others.
An SKC official said, "We will provide our customers with rechargeable battery material solutions with both quality and price competitiveness by adding synergistic effects cread
ted in the copper foil business to the strengths of SKC and Nexeon," adding, "As we promised at the ‘SKC Investor Day’ held in September, we will faithfully complete the Financial Story centered on rechargeable batteries, semiconductors and eco-friendly materials."