Energy storage system (ESS) component manufacturer Hanjung NS is on the rise.
As of 9:53 a.m. on the 25th, Hanjung NS is trading at 39,150 KRW, up 15.15% from the previous day.
Founded in 1995, Hanjung NS develops components for energy storage systems (ESS) and electric vehicles (EV). The company has expanded its business focusing on water-cooled ESS cooling systems. Based on its experience as the first in Korea to commercialize water-cooled ESS cooling systems, it is developing next-generation products. It mass-produces key components of the water-cooled cooling system such as chillers, cooling plates, and heating, ventilation, and air conditioning (HVAC) systems, supplying them to Samsung SDI. The module temperature rises only up to 34℃, is advantageous for fire prevention, and consumes an economical 165 kWh per cycle.
With the development of data centers and artificial intelligence (AI), electricity demand is rapidly increasing. ESS demand is surging to resolve the imbalance in power supply and demand. Five U.S. states have mandated ESS installation, and Europe has announced guidelines to expand ESS profitability and distribution. Korea announced the "ESS Industry Development Strategy" last October, which includes investing to achieve a 35% ESS market share by 2036.
As global ESS demand increases, the cooling system market is also growing. Water-cooled ESS cooling systems provide efficient thermal management using cooling water and can be applied to high-capacity, high-density batteries. The ESS components division recorded a compound annual growth rate (CAGR) of 136% in sales from 2021 to 2023.
Water-cooled cooling systems are an inevitable field for adoption in the ESS and battery markets. They are also a fundamental solution to prevent recent recurring ESS fire accidents. Controlling the heat generated during battery charging and discharging within ESS is a key issue at the industry-wide level. Compared to existing air-cooled systems, water cooling is overwhelmingly safer and more efficient in managing thermal loads. Especially for large-capacity ESS with high energy density, water-cooled systems are advantageous for stability.
Kim Hwan-sik, CEO of Hanjung NS, said, "In the ESS market with limitless growth potential, the water-cooled ESS cooling system technology possessed by Hanjung NS will be a unique competitive edge leading the industry."
Yoon Cheol-hwan, a researcher at Korea Investment & Securities, explained, "Since heat energy is generated during the charging and discharging process of secondary batteries within ESS, temperature management is a critical issue. If heat generation continues, battery life shortens, chemical stability decreases, and there is a risk of fire or explosion." He added, "Especially, the domestic ESS industry sharply contracted from 2020 due to safety concerns following frequent fires in 2018-2019. Recently, the importance of the 'cooling system,' which is also a core area for Hanjung NS in the ESS industry, has become quite significant."
Anna Lee, a researcher at Yuanta Securities, analyzed, "By developing water-cooled (indirect type) systems, the risk of thermal runaway in ternary BESS has been reduced, and power consumption decreased by more than 40%. They monopolize key components of the entire BESS system, so profitability is also high." She added, "Until 2023, supply was mainly air-cooled products, but in 2024, they are diversifying customers with air-cooled plus 1st and 2nd generation water-cooled systems, focusing on patented key components."
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