[Featured Stock] SAT ENG, Domestic Production of German and Japanese Exclusive Secondary Battery Materials... 'An Unclaimed Lottery Ticket'

[Asia Economy Reporter Hyungsoo Park] SATENG is showing strong performance. The news that the company is about to start mass production after focusing on research and development (R&D) to domesticize battery material technology, which was previously monopolized by Japan and Germany, appears to be influencing its stock price. Its subsidiary, Eco Chemical, has independently developed electrode binders for lithium secondary batteries and supercapacitors, as well as functional binder additives for separators, and has established a mass production line. The performance level of these products surpasses that of imported ones. Research on various polymer materials such as gel and solid electrolytes and high heat-resistant separators is ongoing.

As of 11:02 AM on the 30th, the stock is trading at 3,125 KRW, up 17.48%.

SATENG entered the secondary battery business in 2015 and spun off the business division into its subsidiary Eco Chemical in 2019. SATENG holds a 46.6% stake in Eco Chemical. Eco Chemical is developing ceramic-coated separator binders and anode aqueous binders.

Binder materials play the role of adhering active materials and conductive agents to the current collector in secondary battery electrodes. When the binder is used in small amounts but has strong adhesion, it contributes to electrochemical stability and overall battery quality improvement. This directly or indirectly affects the lifespan of batteries used in electric vehicles or ESS (Energy Storage Systems).

If the separator is damaged and the cathode and anode come into direct contact, a rapid chemical reaction can cause ignition. To prevent this, ceramic materials are coated on both sides of the PE/PP composite separator to improve its mechanical strength and heat resistance. Using general materials results in poor dispersibility and adhesion, making uniform coating difficult. However, by using a small amount of the proprietary high-dielectric coating additive developed by SATENG, dispersibility and adhesion between the separator and electrode are improved, enabling stable ceramic coating.

Eco Chemical is conducting tests for the development and mass production of water-dispersible acrylic binders (NB-3, NB-5) and ceramic separator additives (CEPV), which are secondary battery materials. The company plans to start full-scale mass production of these two materials next year. According to industry sources, many battery-related companies such as LG Chem, Vexel, and Kokam have submitted letters of intent to purchase binders and additives from Eco Chemical.

Seong Jun-kyung, CEO of Eco Chemical, explained, "The water-dispersible binder with excellent electrode adhesion is currently applied in the supercapacitor line," and added, "We are scheduled to supply the lithium secondary battery binder." He further stated, "The separator binder additive development has been completed, and evaluation at the mass production scale is finished," adding, "We are preparing for delivery."

Earlier, in September, Eco Chemical participated in 'K-Mtech 2022 (Korea Materials, Composites & Equipment Exhibition)' and announced its technology roadmap related to the development of UHMWPP-based secondary battery separators. The development of next-generation secondary battery separators is underway based on ultra-high molecular weight polypropylene (UHMWPP) powder UPH15, in response to the need for UHMWPP separators, through participation in the UHMWPP consortium.

The development of UHMWPP-based secondary battery separators began as the demand for electric vehicles increased, requiring high-stability lithium secondary batteries for electric vehicles that must ensure safety even near 150°C, unlike conventional small batteries.

Eco Chemical expects that if it can commercialize polypropylene-based separators with price competitiveness and high heat resistance, these will become next-generation separators requiring high output and heat resistance. Ultra-high molecular weight polypropylene, when manufactured as a separator, has significantly lower pore formation during the stretching process compared to polyethylene separators, and separators made solely from this material have not yet been commercialized.

Eco Chemical is conducting research on separator fabrics made from ultra-high molecular weight polypropylene (UHMWPP), which can overcome the low melting point disadvantage of polyethylene, through collaboration with related institutions in industry, academia, and research. By blending a small amount of polyethylene, the company aims to develop organic-inorganic composite heat-resistant separators using ceramic particles and binder additives, which have now entered the mass production stage. Currently, in the initial stage of designing pore density and physical properties of separator fabrics, Eco Chemical uses analysis methods such as FIB-SEM and CAE tools to directly simulate and digitize the shape and distribution of separator pores, securing thermal and mechanical property prediction technology. This allows the derivation of optimal separator manufacturing conditions through evaluation of various manufacturing process variables, which are then applied to the process.

Eco Chemical has been certified as a specialized company in materials, parts, and equipment (SoBuJang) by the Korea Evaluation Institute of Industrial Technology (KEIT).

FS Research explained that ceramic coating enhances the safety of secondary battery separators, but due to the low dispersibility of ceramic particles, binder dispersant additives are necessary. They added that these products were previously entirely imported from Japan, but SATENG is developing domestic alternatives.