Gangwon Energy (114190.KQ) will triple its output of anhydrous lithium hydroxide, a key material for high-nickel cathodes, this year. Although the entire battery industry has contracted due to the electric vehicle chasm (a temporary stagnation in demand), the company judges that demand for anhydrous lithium hydroxide is in fact rising, centered on high-energy-density batteries.
Shin Jin-yong, CEO of Gangwon Energy, met with Seoul Economic Daily on Wednesday at the company's Seoul office in Gangnam and expressed confidence in the business expansion. "We will triple our anhydrous lithium hydroxide output from about 4,000 tons last year to 12,000 tons this year," he said. "Adoption of high-nickel cathodes is expanding in battery markets that require high energy density, such as energy storage systems (ESS), driving up demand for anhydrous lithium hydroxide," he explained.
Anhydrous lithium hydroxide is a material from which crystal water has been removed from lithium hydroxide. It is mainly used in producing high-nickel cathodes with a nickel content of 80% or higher. Because it has lower moisture content than ordinary lithium hydroxide, it is advantageous for improving process stability and production efficiency. "By keeping the moisture content extremely low, below 0.1%, we can increase cathode output by 20% to 25% compared with using hydrous lithium hydroxide that retains moisture," Shin explained.
Demand is especially notable in the ultra-high-nickel segment. Ultra-high-nickel cathodes, with a nickel content of 90% or higher, require a longer calcination and sintering process, in which nickel, cobalt, manganese and other materials are mixed and then baked at high temperatures. As a result, demand is rising for anhydrous lithium materials free of moisture.
Founded in 1976, Gangwon Energy operates businesses in industrial plants at home and abroad, secondary battery EPC (engineering, procurement and construction), and equipment and materials. After being acquired by Pyungsan Group in 2020, the company has been strengthening its secondary battery materials business centered on its subsidiary Gangwon E-Solution.
The company's competitiveness lies in the technological capabilities it has built in the cathode equipment business. Gangwon Energy has supplied production equipment to major cathode makers such as EcoPro and POSCO Future M, securing anhydrous lithium hydroxide process technology. "Anhydrous lithium hydroxide production overlaps significantly with cathode processes such as drying, crushing and classification," Shin stressed. "Because we can manufacture equipment ourselves, we have reduced investment costs, and our process efficiency is higher than that of competitors."
The supply base is also broadening. "Our customers increased from two last year to five this year," Shin said. "We will raise our factory utilization rate, currently around 20%, to 50% to 60%."
The plant business is also showing signs of rebounding after hitting bottom. Last year, Gangwon Energy won an order worth 37.8 billion won for industrial steam generator utility equipment for an SK hynix semiconductor plant. The equipment supplies high-purity steam needed for cleanroom humidity control, ultrapure water production and equipment cleaning. "As the industrial steam generator business, once centered on chemical plants, expands into semiconductors, plant revenue will grow," Shin predicted.
