Isu Specialty Chemical Surges 80% This Month... Institutions Net Buy 41.5 Billion Won
Expectations Rise for Lithium Sulfide Business in All-Solid-State Battery Materials
Securing Competitive Edge Through Stable Yield and Cost Reduction
As the competition to develop all-solid-state batteries, known as the "dream battery," intensifies, the corporate value of Isu Specialty Chemical, a producer of lithium sulfide, a raw material for solid electrolytes, is rising. Expectations for market expansion are growing as all-solid-state batteries are reportedly needed not only for electric vehicles but also for humanoid robots.
According to the financial investment industry on the 27th, the company's stock price has risen 82.6% since the beginning of this month. Considering that the KOSPI rose 4.9% during the same period, the return on investment compared to the market reaches 77.7 percentage points (P). The market capitalization has exceeded 1.8 trillion won. Domestic institutional investors led the stock price increase with a cumulative net purchase of 41.5 billion won. The average purchase price by institutions was 49,515 won, recording an evaluation return of 21.2%.
Isu Specialty Chemical was established on May 1, 2023, through a spin-off from Isu Chemical. It operates in the all-solid-state battery material business, producing lithium sulfide, a raw material for solid electrolytes used in all-solid-state batteries.
Recently, the corporate value of Isu Specialty Chemical reflects expectations for the commercialization of all-solid-state batteries. The need for all-solid-state batteries has increased in various fields such as electric vehicles, robots, urban air mobility (UAM), and aerospace. Hyundai Motor Company plans to operate a pilot line for all-solid-state batteries next month. After trial production, the goal is to begin mass production around 2030. In China, it is also forecasted that electric vehicles equipped with all-solid-state batteries will enter the mass production stage starting in 2030.
The competition in humanoid development is also enhancing the value of the all-solid-state battery-related value chain. Humanoids require various sensors and cameras to utilize artificial intelligence (AI). Moreover, power consumption inevitably increases to operate drive motors, wireless communication, and other components.
Since 2021, Isu Specialty Chemical has been verifying the business feasibility of lithium sulfide with battery manufacturers in Korea, Japan, and the United States. It is expected to complete preliminary research and development and begin full-scale supply from 2027. Noh Woo-ho, a researcher at Meritz Securities, said, "Attention should be paid to the possibility of expanding Isu Specialty Chemical's lithium sulfide production capacity according to the mass production roadmap of front-end customers," adding, "Competitive advantages such as stable yield through hydrogen sulfide internalization and continuous processes, as well as cost reduction in manufacturing processes, will stand out."
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