SM Core is showing strong performance. As SK On rushes to expand overseas production, expectations of benefits appear to be influencing the stock price.
As of 2:52 PM on the 12th, SM Core is trading at 7,850 KRW, up 15.78% from the previous day.
The largest shareholder of SM Core is SK, holding a 26.6% stake. SM Core is seeking new growth engines in the secondary battery sector. Thanks to the rapid expansion of demand such as the spread of electric vehicles, the secondary battery industry market size has grown from $28.2 billion in 2020 at an average annual growth rate of 18.5%. It is expected to reach $65.9 billion by 2025.
In preparation for the expansion of the secondary battery logistics transfer equipment market, SM Core established a dedicated department and made investments. Last year, it achieved the milestone of signing supply contracts for secondary battery logistics transfer equipment for SK On in Iv?ncsa, Hungary, and Yancheng, China. Utilizing the experience and know-how accumulated in the existing logistics automation sector and the production bases owned by SM Core, the company plans to provide customers with low-cost, high-efficiency services. It explained that through collaboration within the group, it aims to lay the foundation for stable growth and strive to make the secondary battery transfer equipment market a core growth engine for the future.
Jidongseop, CEO of SK On, recently stated, "SK On has demonstrated the fastest growth in the industry based on large-scale orders and rapid facility expansion," and introduced, "In the future, we will achieve sustainable growth based on strategies such as global production system efficiency and stabilization, and diversification of product portfolios."
The secondary battery market is growing rapidly. On the 12th, Oh Ikhwan, Vice President of SNE Research, at the ‘NGBS (Next Generation Battery Seminar) 2023’ held at the Korea Science and Technology Center in Gangnam-gu, Seoul, forecasted, "The market size of secondary batteries for electric vehicles (based on packs) will grow at an average annual rate of 15.5% from this year and reach $616 billion (815 trillion KRW) by 2035."
He added, "By 2035, it will be harder to see internal combustion engine vehicles," and introduced, "About 90% of all vehicles will be electric vehicles (including plug-in hybrid vehicles)."
It is expected that by 2035, the production capacity of the top six global companies will reach approximately 5 terawatt-hours (TWh). This is five times larger than last year’s production capacity of 1 TWh. The top six companies include the three domestic battery companies LG Energy Solution, Samsung SDI, and SK On, as well as China’s CATL and BYD, and Japan’s Panasonic.
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