SK Enmove to address demand for EV fluids, thermal management

Riding the wave of electric vehicles (EVs) and data centers, SK Enmove aims to tap into the fast-burgeoning demand for EV fluids and thermal management.

SK Enmove CEO Park Sang-kyu speaks during a press conference on the lubricants supplier's future business plan held at the Grand Walkerhill Seoul hotel in eastern Seoul on Tuesday. [SK ENMOVE]

Riding the wave of electric vehicles (EVs) and data centers, SK Enmove aims to tap into the fast-burgeoning demand for EV fluids and thermal management.

The goal is to become the No. 1 “top-tier” player on the global stage by 2040, the lubricants supplier’s chief executive Park Sang-kyu said Tuesday.

“[The accelerating EV adoption] means that the number of internal combustion engine cars, which have been SK Enmove’s foundation for growth thus far, will significantly shrink,” Park said during a press conference held at the Grand Walkerhill Seoul hotel in eastern Seoul.

“Does that mean SK Enmove’s growth will come to a halt?” Park asked. “My answer to that question is, of course, no.”

For the lubricants supplier, the ongoing shift away from internal combustion engines spells opportunities, rather than risks, the CEO said.

A miniature model of an electric car depicting how SK Enmove's EV fluids run inside a vehicle is displayed at the Grand Walkerhill Seoul hotel in eastern Seoul on Tuesday. [SK ENMOVE]

SK Enmove is widely known for its ZIC brand, under which the company sells car lubricants in some 60 countries including the United States, China and the European nations.

The company currently operates production plants in Korea, China, Indonesia and Spain, and generates 80 percent of its revenue from overseas markets.

Yet with the electrification trend picking up pace, SK Enmove is eyeing the growing EV fluids market, which is expected to reach 12 trillion won ($9 billion) by 2040.

While EVs do not need motor oil lubrication like traditional combustion engine cars, they require specific lubricants and fluids in order to extend their lifespan and boost efficiency.

SK Enmove, which has been supplying EV fluids since 2013, hopes to be heading the global market by 2040. One of its strengths comes from its leading position in the Group III base oil market, which is considered to be premium quality, with the largest market share at 40 percent, according to SK Enmove.

Another growth pillar for the company is the thermal fluids market.

The immersion cooling fluids market for EV batteries, energy storage devices and data centers is expected to reach 42 trillion won by 2040, up from 2020’s less than 1 trillion won.

SK Enmove made an equity investment worth $25 million in GRC, a U.S. liquid immersion cooling company, last year. The local company also signed a memorandum of understanding with Dell Technologies for the marketization of thermal fluids technology.

SK Enmove rebranded itself from SK Lubricants in December last year, expanding its focus from the previous “fuel efficiency” to “electrical efficiency,” an idea that encompasses energy efficiency in EVs, data centers and energy storage systems.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]