AK ChemTech Shifts Business Focus to Battery Materials, Targets Growth with Sodium-Ion Battery Hard Carbon

AK ChemTech is transitioning its business structure, aiming to position battery materials as a future growth engine. The company is intensifying the development of hard carbon for sodium-ion batteries (SIBs), moving away from its traditional petrochemical-centered operations in an effort to improve profitability through new business areas.

According to industry sources on the 29th, AK ChemTech has identified "hard carbon" as a key driver for a turnaround in its performance. The company expects the commercialization of sodium-ion batteries to occur around 2027 and plans to complete factory expansions and cost reductions by 2026. This strategy reflects optimism that growing demand for alternatives—spurred by instability in the lithium supply chain and soaring prices—will favor sodium-ion batteries as a promising option.

In battery operation, ions move between the anode and cathode during charging and discharging. While lithium ions are small, sodium ions are larger, requiring hard carbon with a wider lattice structure to accommodate their movement.

Adding to market expectations, CATL—the world’s largest EV battery maker—recently unveiled a next-generation sodium-ion battery with performance similar to lithium iron phosphate (LFP) batteries, significantly boosting optimism for the sector.

Sodium-ion batteries are generally cheaper and safer than conventional lithium-ion batteries, but have traditionally been criticized for shorter lifespan and longer charging times relative to weight. However, CATL’s technological breakthroughs addressing these shortcomings are expected to accelerate the adoption of sodium-ion batteries.

Against this backdrop, AK ChemTech—the only domestic company currently mass-producing materials for sodium-ion batteries—could benefit from mid- to long-term market growth.

AK ChemTech has been grappling with sluggish earnings since 2023. Last year, the company's consolidated revenue stood at KRW 1.6422 trillion, while operating profit was KRW 15.4 billion, down 66% year-on-year.

Despite weak performance, AK ChemTech has been investing heavily in production capacity, allocating about KRW 100 billion to build a plant for TPC, a core material for aramid fiber production. As a result, rising depreciation costs are expected to increase fixed cost burdens, potentially weakening the company's operating leverage effect. Financial expenses have also risen, totaling approximately KRW 18.8 billion last year—an 18% increase year-on-year—posing another threat to profitability. Given these factors, the company’s first-quarter performance is anticipated to remain sluggish.

Industry insiders believe that the success of AK ChemTech’s hard carbon business, driven by growing demand for sodium-ion batteries, will be a critical factor in determining its performance recovery.

An industry official stated, "AK ChemTech is attracting attention as the only domestic manufacturer of hard carbon anode materials for sodium-ion batteries," adding, "However, the company's ability to secure profitability and enhance technological competitiveness will be crucial to achieving meaningful business success."

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