[Market Focus] HS Hyosung Advanced Materials Surges on Entry into Battery Anode Materials Business

As of 10:00 a.m. on November 4, HS Hyosung Advanced Materials shares were trading at 208,000 won on the Korea Exchange, up 12.43% from the previous day's closing price. This appears to be due to the announcement made the previous day that the company would enter the battery anode materials business through a merger and acquisition (M&A).

On October 31, HS Hyosung Advanced Materials announced that it had agreed to acquire EMM, the anode materials subsidiary of global materials company Umicore, by investing 120 million euros (approximately 200 billion won), and to establish a joint venture between the two companies. The transaction is expected to be finalized after obtaining approvals from relevant governments.

Umicore, headquartered in Belgium, is a leading advanced materials company with a history of more than 100 years. The company boasts world-class research and development capabilities in batteries, catalysts, semiconductors, defense, and aerospace. The silicon anode materials developed by EMM, which are essential for battery manufacturing, have an energy density up to ten times higher than conventional graphite anode materials. This can dramatically reduce electric vehicle charging times and increase driving range.

Global market research firm QY Research projects that the silicon anode materials market will grow from 500 million dollars (approximately 713.7 billion won) last year to 4.7 billion dollars (approximately 6.7087 trillion won) by 2031, representing an average annual growth rate of nearly 40%.