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In a report published on September 6, Ju Min-woo, a researcher from NH Investment & Securities pointed out four major issues that would exert an influence over the secondary (rechargeable) battery industry including ▲the policy direction of the Biden Administration in the U.S., ▲ the direction of the battery technology advancement, ▲ the plans by finished car makers, and ▲the performance of newcomers. In addition, he stated, “I expect that significant keywords lie in enhancing forecasted performance by making a new investment, cost-saving, competition over new technologies. In my opinion, SK IE technology, the material subsidiary of SK Innovation, is the absolute leader in the field of battery separator.”

In the same report, the researcher anticipated a stable growth of SK IE Technology following the expansion of its captive customer, SK Innovation, and its unrivaled status in the premium separator film market based on the CCS*. Furthermore, he emphasized, “The company is expected to relish strong development as its operating profits in 2021 is expected to be KRW 203.9 billion (a 63% increase from the previous year), and that of 2022 would be KRW 343.6 billion (a 68% rise from 2021).”

(*) CCS (Ceramic-Coated Separator): A high-value-added product characterized by reinforcement with an inorganic composite layer that independently developed by SK IE Technology either single or both sides on the existing lithium-ion battery separator film that can immensely enhance heat tolerance and nail penetration performance, key properties of battery in terms of safety.

“We expect that the separator production capacity of SK IE Technology will rise from 1.4 billion m² at the end of 2021 to 4 billion m² by late 2025. The company’s first separator plant in Poland would start the test operation in the third quarter this year, and full operation is going to start in the fourth quarter.” “Besides, the company’s European plants are likely to supply products to not only SK Innovation but also new businesses”, the researcher added.

In addition, he mentioned in the report that “What matters most in separator technology is to satisfy both needs for ultrathin film and polymer PE utilization as the separator film is not directly engage in energy generation but serves as the last resort for battery safety. However, it is more like a contradiction to make it thinner and at the same time beef up its durability.”

“To be able to meet the goal, it is necessary to have stretching technology, coating technology, and polymer PE utilization capability, and more.” He underlined once again that “SK IE Technology maintains a preeminent position in the premium separator film market based on its sequential stretching** and CCS.”

(**) Sequential stretching: A technology developed by SK IE Technology in 2007 for the first time in the world. It is an intricate technology to sequentially stretch a separator film in horizontal and vertical directions and the company’s technology ensures the consistency of quality in this particular process.