Immersion cooling technology is emerging as a promising solution. (Image courtesy of Yonhap)
SEOUL, March 10 (Korea Bizwire) — In the race to solve overheating challenges in electric vehicle batteries, immersion cooling technology—already gaining traction in data centers and energy storage systems—is emerging as a promising solution.
Immersion cooling uses non-conductive cooling fluids to disperse heat from EV batteries, data centers, and energy storage systems. The technology offers superior cooling performance compared to traditional air-cooling or water-cooling methods.
SK On showcased its immersion cooling technology developed in partnership with SK Enmove, at InterBattery 2025, South Korea’s largest battery exhibition, which concluded on March 7.
The immersion cooling system for EV batteries works by circulating cooling fluid inside the battery pack to dissipate heat, improving both performance and safety. A key safety advantage is that the fluid prevents oxygen contact during fires, enabling oxygen-deprivation fire suppression. The technology can also prevent thermal runaway by stopping fires from spreading between battery cells.
This marks the first public demonstration of immersion cooling technology for electric vehicle batteries in South Korea. SK On and SK Enmove plan to commercialize the technology after a two-year development phase.
Similar cooling technologies for data centers are accelerating with the growth of artificial intelligence. Reports indicate that Nvidia is seeking immersion cooling companies to address heat issues with its next-generation AI chip, Blackwell.
SK Enmove entered the cooling fluid development market in 2022—the first Korean company to do so—and is now collaborating with global players including U.S.-based GRC and The U.K.’s Iceotope to develop technologies that reduce data center heat. The company successfully commercialized data center immersion cooling products in the second half of last year.
SK enmove, which pioneered cooling fluid development in South Korea in 2022, has established partnerships with global players like GRC (USA) and Iceotope (UK). The company successfully commercialized data center immersion cooling products in late 2024 and has expanded into ESS applications, launching a non-flammable ESS immersion cooling product with Hanwha Aerospace.
Other Korean energy companies are rapidly approaching commercialization. GS Caltex has developed KIXX Immersion Fluid S with specialized versions for data centers, energy storage systems, and batteries. S-OIL has unveiled its S-OIL e-Cooling Solution, an immersion cooling fluid with a high flash point above 250 degrees Celsius, and is conducting joint research with multiple companies. HD Hyundai Oilbank has developed XTeer E-Cooling Fluid and plans to enter the market after verification testing.
According to research firm Global Information, the electric vehicle thermal management system market is projected to reach approximately $6.31 billion by 2027, with a compound annual growth rate (CAGR) of 18.7%. The cooling fluid market is expected to grow from about 27,000 barrels in 2025 to approximately 2.66 million barrels in 2040, representing a CAGR of 35.5%.
Industry experts note that with no established industry standards yet, companies that move quickly to commercialize and build supply records will have an advantage in gaining market trust.
Kevin Lee (kevinlee@koreabizwire.com)
