Opening Price at 81,600 KRW, Up 94% from the IPO Price of 42,000 KRW on the First Day of Listing
Developing Electrolytes for All-Solid-State Batteries and Gel Type Semi-Solid Electrolytes
[Asia Economy Reporter Hyungsoo Park] Electrolyte manufacturer Enchem is soaring on its first day of listing.
At 9:52 a.m. on the 1st, Enchem was trading at 94,000 KRW, up 15.2% from the opening price.
It started trading at 81,600 KRW, up 94.3% from the public offering price of 42,000 KRW.
Enchem is a company that produces electrolytes, one of the four core materials of secondary batteries, including cathode materials, anode materials, electrolytes, and separators. It succeeded in commercializing the world's first 2nd generation electric vehicle electrolyte. It is the only company in the world to establish local production plants in the four major battery regions: the United States, Europe, Korea, and China, building a production infrastructure. Based on its core competitiveness, it has secured customers such as LG Energy Solution, SK Innovation, and CATL.
Enchem is promoting an NMP recycle business with a total production capacity of 40,000 tons, 20,000 tons each in Poland and the United States. It is estimated to generate about 20 billion KRW in sales starting next year. Beginning with research and development related to various future batteries and electrolytes, such as gel-type electrolytes, which are an intermediate stage between lithium-ion batteries and all-solid-state batteries, rapid charging, and non-flammable electrolytes, it plans to expand its business in earnest.
CEO Jungkang Oh cited "next-generation technology" as the secret to rapid growth. CEO Oh said, "When the company was established in 2013, 1st generation electric vehicle batteries were being sold, but we focused on the 2nd generation," adding, "I always tell my team to develop products that will come to market 5 or 10 years from now."
Enchem plans to use the funds raised from the public offering to invest in expanding overseas plants such as in Hungary and China.
Researcher Hyukjin Yoon of SK Securities explained, "Enchem currently has an annual electrolyte production capacity of 65,000 tons," and "with the operation of the 20,000-ton plant in Georgia, the production capacity will increase to 85,000 tons by the end of the year."
He added, "Next year, the Hungary plant and the Changjiang plant in China will be operated to reach 125,000 tons, and by 2025, a total production capacity of 225,000 tons will be secured across Korea, Europe, China, the United States, and Southeast Asia," noting, "Compared to expansions by cell manufacturers and other secondary battery material companies, this is not an aggressive expansion pace at all."
He explained, "Due to the sharp rise in prices of key raw materials such as lithium salt (LiPF6), internalizing raw materials is becoming important in terms of cost burden and supply stability," adding, "Enchem has invested in shares of a Chinese lithium salt manufacturer to procure lithium salts (including LiPF6)."
Furthermore, "They plan to establish lithium salt production facilities locally in the United States and Poland to internalize and produce 50% of additive demand in the long term," emphasizing, "Enchem is one of the best global electrolyte companies in terms of localization."
He said, "Enchem is developing electrolytes for semi-solid and all-solid-state batteries," and "currently conducting a national research project under the Korea Evaluation Institute of Industrial Technology (KEIT)."
He continued, "They are conducting related research on electrolytes for all-solid-state batteries, gel-type semi-solid electrolytes, and lithium-sulfur secondary battery electrolytes," emphasizing, "Semi-solid batteries, which are an intermediate form between all-solid-state batteries and current lithium-ion batteries, are being developed in gel type."
He analyzed, "Commercialization is planned for 2023," and "for all-solid-state battery electrolytes, inorganic materials such as sulfide-based ones are being reviewed."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
