MOU for Iodine Supply with Chilean Company SQM
Kim Won-ki, President of SK Enmove (left), and Pablo Altamir?s, General President of SQM Iodine Division (right), signed a key terms agreement for iodine supply on the 1st (local time) in Santiago, Chile. Photo by SK Enmove
SK Enmove has proactively secured iodine, a key raw material for next-generation vehicle refrigerants with high energy efficiency. Utilizing iodine, the core raw material, the company plans to develop next-generation vehicle refrigerants with improved heating and cooling performance compared to existing refrigerants, aiming to capture the market.
On the 3rd, SK Enmove announced that it has signed a supply contract with Chilean SQM, the world's number one company in iodine production volume. The specific supply timing and quantity will be finalized after the main contract is signed.
SQM is expected to sell 14,000 tons of iodine annually this year, accounting for 35% of the global iodine supply. By signing a supply contract with SQM, SK Enmove's global refrigerant supply chain is expected to be further strengthened.
In particular, SQM has not only been producing high-quality iodine stably for over 20 years but is also recognized for minimizing carbon and water footprints during lithium and iodine production, which enhances the sustainability of SK Enmove's supply chain. SQM joined the Initiative for Responsible Mining Assurance (IRMA) in 2020 to guarantee ethical and environmentally friendly mineral mining.
The main raw material of the first-generation refrigerants used worldwide, chlorofluorocarbon (CFC), was banned after 2010 due to its harmful effects on the ozone layer. The second and third-generation refrigerants, whose main raw materials are hydrochlorofluorocarbon (HCFC) and hydrofluorocarbon (HFC), respectively, are also facing complete usage restrictions under international ozone layer protection laws due to their high global warming potential.
Earlier, in January, SK Enmove signed a business agreement with Hyundai Motor Group to develop next-generation vehicle refrigerants. The refrigerants being developed by SK Enmove offer enhanced heating and cooling performance compared to existing vehicle refrigerants. Performance evaluations conducted under the same conditions as Hyundai Motor's electric vehicle air conditioning systems confirmed that the new refrigerants maintain superior performance while reducing power consumption during heating and cooling. This product also received the international standard R-Number* certification from the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) in June. The R-Number is a refrigerant certification and registration number granted based on refrigerant stability and material characteristics by ASHRAE.
Meanwhile, on the 1st (local time), Kim Won-ki, President of SK Enmove, and Pablo Altimiras, Head of SQM's Iodine Division, signed a Heads of Agreement (HOA) for iodine supply in Santiago, Chile.
Kim Won-ki, President of SK Enmove, stated, "Through collaboration with SQM, whose quality and production capacity have been verified, we have established a foundation to stably produce and supply next-generation vehicle refrigerants. Going forward, we will build a robust value chain by collaborating with various global companies and advance as a leading global refrigerant company and a representative Energy Saving Company."
Pablo Altimiras, Head of SQM's Iodine Division, said, "Signing a supply contract with SK Enmove, a leader in lubricants and renewable energy sectors, is an important milestone for SQM. Based on this contract, we will strive to pioneer new iodine markets and promote sustainable business growth."
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