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SK Materials starts joint venture with Group14 Technologies

Published: 20 Jul. 2021, 17:49 Updated: 20 Jul. 2021, 19:41

SK Material's headquarters in Yeongju, North Gyeongsang [SK MATERIALS]

SK Materials said Tuesday it is forming a joint venture with U.S.-based anode material manufacturer Group14 Technologies to get more involved in the battery materials business.

The semiconductor and display materials company, which is 49.1 percent owned by SK Holdings, said in a regulatory filing Tuesday that it will invest 60.4 billion won ($52.5 million) in the joint venture.

SK Materials will hold 75 percent of the new company and Group14 Technologies 25 percent.

The new company’s name has been tentatively announced as SK Materials Group14, and it is scheduled to launch within this year. It will be headquartered in Korea, the filing said.

Founded in 2015, Group14 Technologies is based in Seattle and specializes in silicon-carbon-based anode materials dubbed SCC55. According to the company, SCC55 has 50 percent higher energy density than conventional anode materials made of graphite. Higher energy density in battery materials translates into longer driving ranges for electric vehicles and faster charging times.

“Through the latest joint venture, SK Materials will be able to enter the fast-growing battery materials market,” the company said.

“The company plans to diversify its business portfolio and find a new growth engine by implementing high-quality battery materials solutions to various segments.”

Last year, SK Materials invested $13 million in Group14 Technologies, acquiring 10.3 percent of its shares and becoming its third biggest shareholder.

SK Materials shares closed at 400,000 won on Tuesday, a 5.26 percent jump from the previous trading day.

BY JIN EUN-SOO [[email protected]]