Sinsung ENG is showing strong performance. The news that Samsung SDI has taken its first step to dominate the solid-state battery market appears to be influencing the stock price. Solid-state batteries are products known as 'dream batteries' due to their high energy density and lack of fire risk.
As of 9:58 AM on the 3rd, Sinsung ENG is trading at 2,700 KRW, up 15.63% from the previous trading day.
IT specialized media reported that Samsung SDI has started operating the so-called 'S Line,' a solid-state battery pilot line, at the Samsung SDI research center in Suwon, Gyeonggi Province, and has begun sample production this month.
Last year, Samsung SDI was the only one among the three major battery companies to invest over 1 trillion KRW (1.0764 trillion KRW) in R&D. Samsung SDI is also regarded as the leader in solid-state battery development. The core of Samsung SDI's solid-state battery is an anode-less technology, where there is no anode material in the initial state, and the anode forms during charging. Samsung SDI aims to mass-produce solid-state batteries starting in 2027 after testing new manufacturing methods.
Sinsung ENG's main business is cleanrooms. Cleanrooms are spaces that prevent the inflow of external contaminants such as dust (particles) and finely control temperature, humidity, and pressure, and are installed in semiconductor and display factories. Sinsung ENG produces and sells air purification equipment used inside cleanrooms, such as fan filter units (FFUs), as well as installing cleanrooms. Sinsung ENG has entered the dry room business at the request of customers like Samsung SDI and has been expanding investments for the past 3 to 4 years.
Sinsung ENG recorded an operating profit of 4.3 billion KRW in the first quarter of this year, a 49% increase compared to the same period last year. Sales of the Clean Environment (CE) division, which manufactures semiconductor cleanrooms and secondary battery dry room equipment, amounted to 101.1 billion KRW, accounting for more than 80% of total sales. Operating profit was 2.6 billion KRW, a 13% increase year-on-year. As global battery companies increase facility investments in the US, Europe, and Southeast Asia, orders for secondary battery dry rooms have increased, mainly through overseas subsidiaries. Overseas business division sales rose 33% year-on-year to 48.3 billion KRW. Sinsung ENG is considering establishing additional overseas subsidiaries in countries where new investments are expected, in line with the global investment expansion trend.
Baek Joon-gi, a researcher at NH Investment & Securities, said, "Sinsung ENG will achieve high growth rates through secondary battery dry room sales," adding, "Dry rooms are spaces with low humidity conditions of relative humidity below 10% and dew point temperature below -10°C, and attention should be paid to the increasing demand for dry rooms due to secondary battery investments."
He continued, "They are necessary not only for battery manufacturing processes but also for the production of materials such as copper foil, electrolytes, and separators," adding, "Moisture in the manufacturing process reacts with lithium and electrolyte, reducing yield."
Sinsung ENG, which holds a 30% share of the domestic dry room market, is continuously conducting research and development to secure 'super dry room' technology to be introduced in solid-state battery lines. Super dry rooms are built under stricter standards than existing dry rooms, requiring a dew point temperature below minus 70 degrees Celsius. Sinsung ENG has realized an environment suitable for solid-state battery production by securing technology to lower the dew point to minus 70 degrees. Recently, they developed and patented a cooling dehumidification system that can produce ultra-low humidity air while saving energy. A Sinsung ENG official said, “We will enhance the technology for manufacturing solid-state dry rooms to improve the operational efficiency of dry rooms.”
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