■ SK Enmove signed an agreement with Chilean SQM for the supply of iodine, a crucial material for next-gen automotive refrigerants

■ Aiming to become a global leader in refrigerant markets by securing supply chains for key materials

SK Enmove, a subsidiary of SK Innovation known for its leadership in the lubricants market and its focus on enhancing electrical efficiencies such as those in electric vehicles and thermal management, has proactively secured a stable supply of iodine. This crucial ingredient is vital for producing high-efficiency, next-generation automotive refrigerants. By utilizing this essential material, SK Enmove plans to develop advanced refrigerants that offer superior cooling and heating performance compared to current market offerings, positioning the company as an industry leader.

On October 3 (KST), SK Enmove announced the signing a supply agreement for iodine with SQM, a leading global mining company operating in northern Chile and the world’s largest iodine producer. The specifics regarding the timing and quantities of the supply will be finalized upon the execution of the definitive agreement.

In its latest Q2-2024 results, SQM announced that it anticipates annual sales exceeding 14,000 tons of iodine. This positions the company as a major player, accounting for approximately 35% of the global iodine supply. SK Enmove’s agreement with SQM is poised to significantly strengthen the global refrigerant supply chain.

Notably, SQM has been recognized for reliably producing high-quality iodine for over 20 years while minimizing environmental impacts during lithium and iodine production. This partnership enhances SK Enmove’s commitment to a sustainable supply chain. In 2020, SQM joined the “Initiative for Responsible Mining Assurance (IRMA)” to ensure ethical and eco-friendly mineral extraction practices.

Existing refrigerants such as CFCs (chlorofluorocarbons), which were widely used in the first generation, were banned after 2010 due to their detrimental effects on the ozone layer. Subsequent generations using HCFCs (hydrochlorofluorocarbons) and HFCs (hydrofluorocarbons), though less harmful to the ozone, are now facing international restrictions due to their high global warming potential under ozone protection laws.

In January this year, SK Enmove signed a Memorandum of Understanding (MoU) with Hyundai Motor Group to develop next-generation automotive refrigerants. These new refrigerants, designed to enhance cooling and heating performance compared to existing options, showed superior efficiency in tests conducted on Hyundai’s electric vehicle air conditioning systems, while also reducing energy consumption. In June, the new product was certified by the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) with an R-Number*, signaling international compliance with safety and efficacy standards.
*R-Number: certified by ASHRAE for refrigerant stability and properties, essential for refrigerant registration and certification

In related news, on October 1^st (local time in Santiago, Chile) Kim Wone-kee, CEO of SK Enmove, and Pablo Altimiras, CEO of SQM-Iodine Plant Nutrition Division, signed the Heads of Agreement (HOA) for the iodine supply.

CEO of SK Enmove, Kim Wone-kee, remarked, “This collaboration with SQM, whose quality and production capabilities are well-verified, lays a solid foundation for the stable production and supply of next-generation automotive refrigerants. We will continue to build a robust value chain through partnerships with various global companies, aiming to become a leading global refrigerant company and a representative Energy Saving Company.”

Pablo Altimiras, CEO of SQM-Iodine Plant Nutrition Division, highlighted, “Signing this HOA with SK Enmove, a leader in lubricants and new energies, is a relevant milestone for SQM. This agreement gives us the possibility to think forward to a stable supply of iodine in a use that is currently non-existent, and to continue to grow in a sustainable way.”

[Photo] Kim Wone-kee, CEO of SK Enmove (left) and Pablo Altimiras, CEO of SQM-Iodine Plant Nutrition Division (right) sign a Heads of Agreement (HOA) for the supply of iodine on October 1^st in Santiago, Chile (local time).