[Featured Stock] Isu Specialty Surges on Battery Material Optimism

As of 10:01 AM on the 17th, the stock price of precision chemical company Isu Specialty Chemical is recorded at 48,650 KRW, up 11.2% from the previous trading day.

Isu Specialty Chemical, which was spun off from Isu Chemical in 2023, produces TDM used as an additive for molecular control in the ABS synthetic resin production process, IPA used in paints and hand sanitizers, and D-Sol used in printing inks and metal cleaners. With high research and development (R&D) expertise, it is known as the only domestic company possessing both desulfurization and vulcanization technologies.

In particular, the company attracted market attention last year by starting the construction of a pilot line for Li2S (lithium sulfide) used in all-solid-state batteries. Li2S is a key raw material for making solid electrolytes in all-solid-state batteries. All-solid-state batteries using Li2S improve safety, lifespan, and energy density compared to conventional lithium-ion batteries. Especially, since they do not use liquid electrolytes, the risk of fire is reduced, contributing to enhanced safety in electric vehicles.

The company expects mass production of all-solid-state batteries to begin in 2027, with the market expanding to 641 GWh by 2035. Accordingly, the demand for the raw material Li2S is also expected to grow sharply from 364 MT (Metric Tons) to 51,313 MT during the same period.

According to the standalone financial statements announced by Isu Specialty Chemical on the 10th, sales reached 332.1 billion KRW, an increase of 182.5% year-on-year, and operating profit turned positive at 15.2 billion KRW. The significant difference in sales is due to the accounting period difference caused by the spin-off from Isu Chemical in May 2023 (the 2023 figures are calculated from May 1 to the end of the year).