SK enmove aims to tap power efficiency market

SK enmove CEO Park Sang-kyu announces at ZIC Brand Day held in Seoul, on Sep. 5. [Courtesy of SK innovation]

SK enmove Co. is preparing to enter the power efficiency market, which includes electric vehicle lubricants and data center thermal management, with its ZIC lubricant brand. The company aims to leap into a leading position in the power efficiency market, estimated to be worth 54 trillion won ($40.5 billion) by 2040, and go beyond the engine oil market.

The strategy was unveiled during the company’s future vision presentation event, ZIC Brand Day, on Tuesday.

The company plans to supply lubricants and cooling agents related to power efficiency, which is a core element of future energy sustainability. The company said that its products under the ZIC e-FLOW brand will increase power efficiency in all areas where electric energy is used, including EVs, data centers, and EV batteries.

The strategy is viewed as a response to observations that internal combustion engine oil’s growth potential is not guaranteed as the automotive industry shifts toward electrification.

The lubricant business currently serves as a stable source of revenue for oil refineries and plays a significant role. However, in anticipation of the era of vehicle electrification, SK enmove decided to swiftly restructure its business. Traditional lubricants currently have an oil change interval of 5,000 to 30,000 kilometers, while lubricants for EVs can last between 100,000 to 150,000 kilometers.

SK enmove has been developing lubricant products for EVs since 2013 and supplying them to automakers. According to Bloomberg New Energy Finance (BNEF), EVs are projected to account for 48 percent of total automotive sales by 2040 and the EV lubricant market is expected to hit 12 trillion won.

The company also plans to target the thermal management market. The importance of thermal management for controlling heat and ensuring stable power supply is becoming paramount as electricity consumption increases and equipment density rises.

“Immersion cooling is still an emerging market, but with the explosive growth in data usage, enhancing power efficiency through thermal management will emerge as a core business area in the future,” SK enmove CEO Park Sang-kyu said.