Korean battery manufacturers are focusing on silicon anode materials as a key strategy to reduce dependence on Chinese graphite, a major weakness of K-batteries. This next-generation material is estimated to have an energy density about 10 times higher than the graphite-based anode materials currently used in most electric vehicle batteries, making it a game changer in improving driving range and reducing charging times for electric vehicles.
According to industry sources on Dec. 11, while Daejoo Electronic Materials has been the sole producer of silicon anode materials, companies like Hansol Chemical and SK materials are expected to join production soon, possibly by the end of this year.
Hansol Chemical has completed a silicon anode material factory in Korea and is currently conducting sample tests with key clients. It plans to start mass production once performance evaluations are completed. The company has invested 85 billion won to achieve an annual production capacity of 750 tons.
SK materials is also advancing into mass production of silicon anode materials through a joint venture with Group14 Technologies, a U.S. battery materials company. They could start production as early as the end of this year and have completed a domestic factory capable of producing 2,000 tons annually, with plans to increase capacity to 10,000 tons by 2025.
SKC and the POSCO Group are also accelerating the establishment of production systems to enter the silicon anode material market. Daejoo Electronic Materials, the only silicon anode material manufacturer in Korea, plans to expand its production capacity from 3,000 tons to 10,000 tons next year, and to 20,000 tons by 2025. With multiple companies entering silicon anode material production, a significant increase in domestic production capacity is expected from next year.
The expansion of silicon anode material production is anticipated to alleviate some dependence on graphite imports from China. Anode materials, one of the four major battery materials, have been almost exclusively dominated by China, from raw materials to material production. According to the International Energy Agency (IEA), China accounted for 70.4% of graphite production in 2021. China halted graphite exports, and the U.S. government restricted Chinese materials through the Inflation Reduction Act (IRA), making the development and production of non-Chinese graphite silicon anode materials urgent for targeting the North American market, including the U.S., with demand expected to rise significantly from next year.
A critical factor is the price of silicon anode materials. Currently, this material costs between US$60 and US$80 per ton, nearly eight times more expensive than graphite-based anode materials, which cost only US$8 per ton. As a result, silicon anode materials are currently used only in high-end brand vehicles. However, the industry expects that as production dramatically increases, the price will stabilize downwards to around US$40 per ton within a few years.