Aekyung Chemical to Expand Hard-Carbon Capacity 3.7-Fold, Sees Business Taking Off Next Year

Jeonju Plant's Annual Capacity to Expand from 350 to 1,300 Tons
Conversion and Expansion of Lithium-Ion Production Line to Be Completed by Year-End
Optimism as Sodium-Ion Battery Market Expands

Aekyung Chemical plans to increase its hard-carbon anode material production capacity by 3.7 times and target the sodium-ion battery market. The company plans to convert and expand existing production facilities for lithium-ion batteries to make materials for sodium-ion batteries, respond to growth in the energy storage system (ESS) market, and begin delivering tangible business results next year.

An electron microscope image comparing particles in Aekyung Chemical's hard-carbon anode material (left) with those in a competitor's product (right). The company says its product's particles are relatively round and have smooth surfaces, making them easier to coat onto anodes and helping deliver uniform performance. Aekyung Chemical

According to industry sources on October 17, Aekyung Chemical is converting and expanding its existing hard-carbon anode material production line for lithium-ion batteries at its Jeonju plant to produce materials for sodium-ion batteries (SIBs). The company plans to complete the work by the end of this year, increasing annual production capacity from 350 tons in 2024 to 1,300 tons, or about 3.7 times its previous level.

This expansion is the result of a business shift the company has been preparing for over several years. Aekyung Chemical has developed and produced hard-carbon anode materials for lithium-ion batteries since 2012, but the market has remained small, limiting their contribution to revenue. The company therefore focused on the growth potential of sodium-ion batteries and has been developing related products and pursuing the conversion and expansion of its production facilities.

With the recent growth of the ESS market, the company’s early investment is increasingly likely to pay off. Sodium-ion batteries have a lower energy density than lithium-ion batteries, meaning they store less electricity at the same weight. This puts them at a relative disadvantage in electric vehicles, where battery weight and size affect driving range, but ESS units installed at fixed locations face fewer such constraints. In addition, sodium is more abundant than lithium, creating potential to achieve cost competitiveness, and sodium-ion batteries are also considered to have safety advantages. Their use is therefore expected to expand in the ESS market, where cost and safety are important.

Aekyung Chemical's hard carbon anode material 'AHC-3' (center) and lithium-ion and sodium-ion batteries using the material. Aekyung Chemical

As demand for sodium-ion batteries grows, the market for hard carbon, a key material, is also expected to expand. Hard carbon stores sodium ions when a battery is charged and releases them when it is discharged. Because sodium ions are larger than lithium ions, they are difficult to store in conventional graphite anode materials. Hard carbon, by contrast, is well suited to storing sodium ions because it has an irregular internal structure with many empty spaces.

Aekyung Chemical cites its ability to mass-produce hard carbon for secondary-battery anode materials in Korea as a competitive advantage, saying it is the only company in the country with this capability. The company also points to product performance as a strength. According to Aekyung Chemical, its hard carbon has relatively smooth particles, making it easy to coat anodes evenly and deliver consistent performance.

Aekyung Chemical plans to complete the expansion of its production facilities by the end of this year and accelerate business growth starting next year. “With the production facility expansion set to be completed this year, we expect to achieve tangible business results starting next year,” an Aekyung Chemical official said.

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