SK Materials is investing 60.4 billion won in its silicon anode business to leap forward as a high-value materials technology company.

SK Materials (CEO Lee Yong-wook), a company specializing in semiconductor and display materials, announced on the 20th that it will establish a joint venture, "SK Materials Group 14 (tentative name, hereinafter the joint venture)," with Group 14 Technologies (hereinafter Group 14), a U.S. company specializing in next-generation battery anode materials.

SK Materials holds a 75% stake in the joint venture and Group 14 holds a 25% stake. SK Materials' investment is approximately 60.4 billion won, and the headquarters is planned to be located in Korea (location TBD). Group14, headquartered in Seattle, USA, is a battery materials company established in 2015 that holds technology and patents related to silicon anode materials.

The 'silicon anode material' being introduced through this joint venture is attracting significant attention from electric vehicle battery manufacturers as it offers improved driving range and reduced charging time compared to the 'graphite anode material' primarily used in electric vehicles.

In addition, its lightweight and compact nature makes it advantageous for battery manufacturing, so it is being utilized in IT devices such as mobile phones and tablets, as well as small aircraft like drones, where increased convenience and usage time are required.

With the establishment of this joint venture, SK Materials has diversified its product portfolio and secured future growth engines by newly adding battery materials to its business, in addition to its existing semiconductor, display, and OLED materials.

Park Ki-sun, Head of New Business Development at SK Materials, stated, “SK Materials, a leader in the domestic materials industry, will be able to successfully enter the rapidly growing global market for next-generation battery materials through the establishment of this joint venture.” He added, “Moving forward, we will apply high-performance battery material solutions to various fields to diversify our portfolio and secure future growth engines, aiming to leap forward as a High Value materials technology company.”

Meanwhile, SK Materials became the third largest shareholder last December by securing a 10.3% stake through a $13 million (approximately 14.2 billion KRW) investment in Group 14's Series B preferred stock round.