Seonam Achieves World-Class Level in Power Application Fields... Continuous Love Calls for 'Dream Energy Materials'

Surging Demand for Chargers in the Electric Vehicle Era... Materials Reducing Transmission Losses Gain Spotlight
Growing Expectations for Commercialization of Superconducting Cables... Rising Demand to Replace 'Daedongmaek' Transmission Networks
Anticipated Participation in Large-Scale Domestic and Overseas Projects

This year, Seonam, which had been lagging behind the KOSDAQ index's rise, has recently expanded its upward momentum. On the 27th of last month, it rose to the price limit, attracting market attention. While the KOSDAQ market continues its upward trend mainly driven by secondary battery material stocks, Seonam's stock price is rising with expectations of benefiting from the growth of the electric vehicle market.

According to the financial investment industry on the 10th, Seonam has risen 49.2% this year. Considering that the KOSDAQ index rose 30.7% during the same period, the return rate compared to the market recorded 18.5 percentage points.

Seonam possesses core technology in the field of high-temperature superconducting wire. It produces second-generation high-temperature superconducting wire. This is a thin metal wire material commonly found in everyday electrical wires. It is a material whose resistance becomes 'zero (0)' below a certain temperature (critical temperature). Unlike copper and other common metals, it can conduct current without loss due to resistance. Superconducting magnets are widely used in medical and transportation fields. Seonam develops and supplies high-field insulated high-temperature superconducting magnet systems and insulated high-temperature superconducting magnet rotators.

It collaborates with Korea Electric Power Corporation (KEPCO), LS Cable & System, LS Electric, Russia's SuperOx, France's Nexans, NASA, Korea Railroad Research Institute, Supergenics, Airbus, and others for customized product development and new business discovery.

Attention Due to Commercialization Expectations of Superconducting Cable Market

Recently, Seonam has been gaining attention in the domestic stock market with expectations for the commercialization of the superconducting cable market. In Korea, transmission loss costs reach 1.7 trillion KRW annually. About 3.6% of the annual power production is lost due to long-distance transmission. Power production mainly occurs in provincial areas, but consumption is concentrated in the metropolitan area, causing these losses. The annual power loss is equivalent to the output of operating 21 1-gigawatt (GW) nuclear power plants for one year. Power cables made using superconducting phenomena can increase transmission capacity by more than five times compared to conventional copper cables of the same size while reducing transmission loss to less than one-tenth.

It is also possible to maximize transmission efficiency and miniaturize transmission facilities to respond to the explosively increasing power demand due to the expansion of electric vehicle adoption. This is why high-temperature superconducting wire is called the 'dream green energy material.'

Seonam supplies second-generation high-temperature superconducting wire and multilayer thin-film deposition equipment for buffer layers necessary for manufacturing superconducting wire. Based on domestic material localization achievements, it participated in KEPCO's superconducting cable transmission project. The construction was delayed due to COVID-19 and KEPCO's profitability issues but started transmission business from the end of 2021.

Recently, advanced countries such as the United States and Germany are promoting projects applying superconducting technology to next-generation transmission systems. Leveraging its technological competitiveness, Seonam has a high proportion of overseas sales. The superconducting materials market can be divided into two performance categories: first, high critical current and uniformity required in power application fields; second, high critical current density under strong magnetic fields required in magnet application fields. Seonam claims to demonstrate world-class performance in power application fields. It is expected to expand its market share depending on the progress of superconducting cable and power equipment projects. Globally, 10 projects applying superconducting technology to next-generation energy transmission systems are underway in China, Japan, Germany, Ireland, Scotland, the Netherlands, the United States, Russia, and Australia.

Seonam recorded sales of 6.4 billion KRW last year, a 459.7% increase compared to the previous year. Sales surged as the superconducting cable project, delayed due to the COVID-19 pandemic, resumed. Operating loss was 2.4 billion KRW, reducing the deficit from 3.6 billion KRW the previous year.

Seonam introduced itself as the only wire supplier in the domestic market where the superconducting industry is active and is recognized as a 'top 3' company worldwide for quality, productivity, and price competitiveness. It holds the only domestic commercial project delivery record for superconducting magnets and is striving to enter the global main market. Prices are maintained at 50% or the industry's lowest level compared to competitors. Contract negotiations are increasing due to world-class high critical current performance required in power system application markets combined with affordable pricing policies.

Expectations for Overseas Expansion through Initial Project Participation

Seonam's 2G HTS wire was used in the Heungdeok~Singal 1.1 km substation project, the world's first superconducting cable commercialization project recognized by the International Energy Agency (IEA). It was also selected as the superconducting wire supplier for the Munsan~Seonyu 2 km transmission platform project. In projects with KEPCO and LS Cable & System, Seonam supplied over 300 km of superconducting wire.

If superconducting wire commercialization is achieved, Seonam's performance could improve explosively. Although technical challenges remain, expectations for commercialization are growing alongside scientific advancements. Recently, a research team led by Professor Ranga Dias at the University of Rochester discovered a material that becomes superconducting at 20.5°C and published the results in the international journal 'Nature.'

SuperNode in Ireland is promoting a project aiming to provide over 450 GW of offshore wind energy across the EU by 2050 by integrating HVDC technology and superconducting long-distance transmission network technology in renewable energy generation and transmission technology, in line with Europe's carbon-neutral policy. According to the plan, prototype production and reliability verification of high-temperature superconducting cables are scheduled from 2023 to 2025. Seonam is negotiating with SuperNode, the project promoter, LS Cable & System, the cable manufacturer, and Nexans to prepare product specifications and mass production.

The growth of the electric vehicle market is also one of the changes accelerating the commercialization of superconducting wire. The United States, aiming to increase electric vehicle adoption rates, is considering measures to secure electric vehicle charging stations. Earlier, President Joe Biden issued an executive order in a 2021 White House speech to foster the electric vehicle industry. The goal is for electric vehicles to account for half of new car sales by 2030. Major foreign media reported that the U.S. Environmental Protection Agency (EPA) would propose greenhouse gas regulations with higher targets than President Biden's 2021 White House speech. The plan is to replace two out of three new cars with electric vehicles within ten years. Annual electric vehicle sales in the U.S. are expected to exceed 8 million units from 2030. Considering that 810,000 electric vehicles were sold last year, this represents a tenfold growth in seven years.

Demand for charging stations inevitably increases faster than new car sales because the entire electric vehicle market must be considered. The U.S. decided to invest 7.5 billion USD through the 2021 Infrastructure Act to build about 500,000 electric vehicle charging networks. Given the growth rate of electric vehicles, the U.S. government's plan requires supplementation. Some experts pointed out that millions of charging stations are needed.