This file photo provided by SK Nexilis Co. on Oct. 20, 2020, shows rolls of copper foil, one of the key materials used in the lithium-ion battery for electric vehicles.
SEOUL, Nov. 1 (Korea Bizwire) — SKC Co., a chemical unit of South Korea’s No. 3 conglomerate SK Group, said Monday it will invest US$33 million in a British battery materials maker with two private equity funds and other investors in a bid to tap into the fast-growing sector.
SKC will form a consortium with BNW Investment and SJL Partners to invest a combined 80 million won in Nexeon Ltd, with the rest to be invested by SJL Partners and a pool of other investors, the company said in a statement released after the board’s approval.
Nexeon is a battery materials manufacturer known for its unique technology in producing silicon anode, a key component in electric vehicle (EV) batteries to enhance EV mileage and the battery recharging speed.
Through the deal, SKC will secure a stake in Nexeon and secure the licensing for its silicon-carbon composite anode materials technology, the company said.
The announcement came about a month after the SKC’s board voted down a joint venture proposal with the same British company.
The rejection was reportedly due to disagreement among the board of directors over the timing and feasibility of the JV plan, according to industry sources, while some others have speculated that the opposing side might have raised the growing overlap in battery materials-related investment among the SK affiliates.
SKC has unveiled its plan to join hands with industry players to expand further into lithium-ion materials, with an aim to generate over 80 percent of its earnings from the sector and setting a goal of 30 trillion won in corporate value by 2025.
On Monday, SKC said its operating profit more than doubled to 145.8 billion won in the third quarter from a year earlier, with the revenue reaching 886.8 billion won, up 32.8 percent in the same period.
(Yonhap)
