Lee Young-kwan, Chairman of Toray Advanced Materials, "Approaching New Investments Conservatively"

Impact of the Electric Vehicle Chasm
"Factory Operating Rate at 60%... Expecting a Rise in the Second Half"
"Battery Separator Market Expected to Improve in 2 to 3 Years"

Lee Young-kwan, chairman of Toray Advanced Materials, announced that the company will take a conservative approach to new investments such as facility expansion due to the impact of the electric vehicle chasm (temporary demand slump). Toray Advanced Materials is a Korean subsidiary of the Japanese conglomerate Toray Group, producing various high value-added advanced materials including battery separators for electric vehicles.

On the 13th, the day before, Chairman Lee met with Asia Economy after the 25th Korea-Japan New Industry Trade Conference held at Lotte Hotel in Sogong-dong, Jung-gu, Seoul, and explained, "It will take more time to make decisions such as facility expansion," indicating a conservative view on new investments. He mentioned that due to the sluggish market conditions, the current factory operating rate is only about 50-60%, but expects the operating rate to increase around the second half of this year.

Lee Young-kwan, Chairman of Toray Advanced Materials

Separators are considered one of the four core battery materials along with cathode materials, anode materials, and electrolytes. The separator prevents the cathode and anode from touching while allowing lithium ions to pass through. In Korea, SK IE Technology and Toray Advanced Materials are representative manufacturers of battery separators. According to energy-focused market research firm SNE Research, the total registered amount of separators used in electric and hybrid vehicles worldwide last year was approximately 13.23 billion square meters, a 35% increase compared to the previous year.

Toray Advanced Materials operates five factories producing battery separators, aramid, and carbon fiber in the Gumi Industrial Complex, Gyeongbuk Province. They also operate factories in Anseong, Gyeonggi Province; Gunsan, Jeonbuk Province; and Gongju, Chungnam Province. The parent company, Japan's Toray, is the global market leader in carbon fiber. Carbon fiber is used as a material for aircraft and automobiles. According to market analysis firm Forecast International, the global commercial aircraft market size is expected to grow from $229.4 billion in 2023 to $384.8 billion (approximately 509 trillion KRW) in 2032, with an average annual growth rate of 5.9%.

Chairman Lee expects electric vehicle demand to improve in 2 to 3 years, leading to a renewed increase in demand for battery separators. He explained, "Currently, the business pace has slowed due to the electric vehicle chasm, but it will improve again in 2 to 3 years."

Chairman Lee is regarded as the longest-serving CEO in the domestic chemical industry. He joined Cheil Fibers, the predecessor of Toray Advanced Materials, in 1973 and was appointed CEO of Toray Advanced Materials in 1999. He has served as chairman since 2013 and continues to hold the CEO position.