[Asia Economy Reporter Jang Hyowon] Jogwang Paint is showing strong performance. The news that SK On has developed a prototype of a ‘cobalt-free’ battery completely excluding cobalt has drawn attention to Jogwang Paint, which supplies thermal management materials to its subsidiary.
As of 9:28 AM on the 7th, Jogwang Paint is trading at 8,350 KRW, up 2.83% from the previous day.
According to the battery industry, SK On recently succeeded in developing a prototype with performance exceeding that of the existing ternary (NCM - Nickel-Cobalt-Manganese) products without using cobalt. The industry had widely expected SK On to succeed around next year, but this achievement was advanced by about one year.
Cobalt accounts for about 40% of the metal cost in secondary battery materials and is the most expensive among ternary battery materials. SK On created the ‘cobalt-free’ product by reducing cobalt content to zero and increasing the proportion of nickel or manganese. The performance in terms of lifespan and driving range is similar to existing products.
Meanwhile, Jogwang Paint owns CK EM Solution, a thermal management solution company applicable to secondary batteries, as a subsidiary. Secondary battery thermal management materials play a role in fixing cells within the battery module so that they do not detach from the vehicle body due to shocks. They also simultaneously perform the function of TIM (Thermal Interface Material), which quickly dissipates heat generated from the cells to the outside.
CK EM Solution is proactively establishing factories in overseas secondary battery hub regions such as the United States and Hungary. In particular, mid- to long-term capital expenditure (CAPEX) investments in production facilities are expected to continue in overseas hub regions of secondary battery manufacturers, including SK On, their client.
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