SKC pivots toward battery, chip materials to command global No. 1 by 2025

SKC CEO Lee Wan-jae

SKC Co., chemical and tech material producing unit of South Korean conglomerate SK Group, envisions becoming the world’s No. 1 mobility materials company by placing top priority in new materials business like next-generation anode and cathode materials for secondary batteries and glass substrates for high performance computing.

Projecting its corporate value at 30 trillion won ($25.5 billion), the company targets to earn more than 80 percent of its revenue from mobility materials business by 2025, SKC CEO Lee Wan-jae told during the online SKC Investor Day event detailing out its mid-term business strategy on Friday.

The reorganization would focus on development of secondary battery materials, the company said. With battery copper foil output ramp-up by 50,000 tons from Malaysia, 100,000 tons from Europe and 50,000 tons from the United States, SKC aims to expand its total output to 250,000 tons per year to make a leap forward to safely become a global No. 1 player with a market share of 35 percent.

New materials like silicon anode materials and high-nickel cathode materials are another focus to significantly improve the battery performance. The company plans to expand partnership with global leading materials companies to secure related technologies and nurture the business as new growth engine, Lee emphasized.

Through the efforts, SKC aims to scale up its revenue from secondary battery materials business to 4 trillion won level, nearly 10-fold of the current revenue.

As for the semiconductor materials business, SKC concentrates on new high-tech materials like glass substrates for high performance computing, adding to the existing chemical mechanical polishing (CMP) pad and blank mask businesses. It is aiming at 2 trillion won revenue from the entire semiconductor materials business by 2025.

For eco-friendly materials business, the existing film and chemical business will be reorganized with focus on environmental, social and corporate governance (ESG) strategy.

For financing, SKC plans to use own capital with strategic financing from joint ventures and policy loans. It will maintain its current financial soundness while projecting shareholders’ interests, Lee added.

SKC shares closed 0.86 percent higher at 176,000 won in Seoul trading on Friday.

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