[Special Stock] CIS Develops Independent Technology for Continuous Production of 'Dream Battery' Core Material... Expected to Become a Game Changer

[Asia Economy Reporter Hyungsoo Park] CIS is showing strong performance. The news that it has begun preparations for full-scale production of manufacturing equipment and solid electrolytes for all-solid-state batteries, known as the "dream battery," appears to have influenced its stock price.

At 1:24 PM on the 17th, CIS was trading at 13,750 KRW, up 10.89% from the previous trading day.

On the same day, CIS announced that it had signed a sales contract for a factory site (27,942㎡, approximately 8,452 pyeong) about 1.4 times larger than the entire site of Plants 1 and 2 in the Daegu Seongseo Industrial Complex. Its subsidiary, CISolid, has established a foundation to focus on the production of solid electrolytes and the development and manufacturing of equipment for all-solid-state batteries. CIS established CISolid as a 100% subsidiary last April.

All-solid-state batteries are known as a dream technology that can break down all psychological barriers hindering the major transition to electric vehicles. With advantages such as long driving range, fast charging speed, and fire safety, they are regarded as a "game changer" that will replace existing lithium-ion batteries. While the technology to realize the theory is lacking and mass production has not yet been achieved, not only battery manufacturers but also electric vehicle mass producers are putting their lives on the line in developing all-solid-state batteries.

All-solid-state batteries are next-generation batteries that can surpass the energy density of lithium secondary batteries. They are expected to be commercialized within a few years. In particular, sulfide-based solid electrolytes are known to be advantageous for large batteries such as those used in electric vehicles. The technology Toyota Motor Corporation is expected to unveil in the near future is also anticipated to be of the same type.

All-solid-state batteries are evaluated as the optimal technology for electric vehicles because they have high energy density and no risk of fire. According to a report by Japan's NEDO (New Energy and Industrial Technology Development Organization), global electric vehicle (EV, PHEV) sales are estimated to reach 35 million units by 2030. The required energy density is expected to approach 400 Wh/kg. Therefore, current lithium secondary batteries have limitations, and the market is expected to be reorganized around all-solid-state batteries capable of achieving high energy density.

CIS's subsidiary CISolid is preparing for full-scale production of solid electrolytes based on technology developed by CIS. The company is also preparing to establish a factory in time for early next year, when the production line fabrication and installation will be completed.

CIS recently secured proprietary technology for mass production of solid electrolytes and filed several related patents. It is building a continuous production system. While dry-process solid electrolyte production has been limited to batch-type manufacturing processes, the company has developed a system capable of continuous production through innovation in manufacturing equipment and processes. This enables simplification of the manufacturing process, reduction of production costs, and securing of stable quality.

Kim Suha, CEO of CIS, said, "As interest in all-solid-state battery-related technologies and products increases, we have established CISolid, a specialized solid electrolyte production company, and are preparing for mass production."

He added, "Since 2022, when Prime Planet Energy & Solutions (PESS), a joint venture between Toyota Motor Corporation and Panasonic, announced plans to mass-produce all-solid-state batteries, the market is expected to expand significantly. To respond to this, we are in discussions with leading domestic and international companies regarding the supply of solid electrolyte and all-solid-state battery production lines."

CIS recorded sales of 73.2 billion KRW and operating profit of 10.7 billion KRW in the first half of the year, achieving its highest half-year performance. It also secured an order backlog of 272.1 billion KRW. The company plans to expand its factory on the secured site to prepare for increasing orders for manufacturing equipment due to the expansion of the electric vehicle market. Some of the site will be used by CISolid for the production of solid electrolytes for all-solid-state batteries.