HS Hyosung Signs Joint Venture Agreement with Umicore for Next-Generation Anode Material Business
– Anticipated annual 40% growth through graphite substitution… Securing a future growth engine for the Group
– Acquiring foundational technology for "game-changing" high-efficiency, fast-charging next-generation batteries
– Personally led by Vice Chairman Cho Hyun-Sang, emphasizing "value maximization through technology and intellectual assets"
– Strengthening South Korea's global supply chain competitiveness through domestic investment and job creation
SEOUL, South Korea, Nov. 12, 2025 /PRNewswire/ -- HS Hyosung Group has officially entered the silicon anode material business, a core component of next-generation batteries.
This move aligns with Vice Chairman Cho Hyun-Sang's "value management" strategy, which emphasizes maximizing corporate value through core technologies and intellectual assets.
On October 31, HS Hyosung announced an investment of €120 million (approximately KRW 200 billion) to acquire The Extra Mile (EMM), the battery anode materials subsidiary of Belgium-based global materials technology leader Umicore, through the establishment of a joint venture with Umicore. The transaction is expected to close following customary regulatory approvals in the coming months.
Umicore is a global enterprise with over a century of history and cutting-edge materials technology, combining metals recycling and processing expertise with world-leading R&D and production capabilities across key sectors such as batteries, catalysts, semiconductors, and aerospace.
- Silicon Anode Material: A Game-Changer for Next-Generation Batteries
Silicon anode material is widely regarded as a game-changer in next-generation battery technology.
Applied to the battery's anode, it offers energy densities up to ten times higher than conventional graphite anodes and enables rapid charging, significantly reducing electric vehicle charging time.
These advantages directly enhance charging efficiency, driving range, and cost competitiveness, making silicon anodes a focal point for global automakers and battery manufacturers.
As other battery materials approach their technological limits, silicon anodes represent the field with the greatest potential for future innovation.
The global battery market continues to expand rapidly. By 2024, electric vehicles accounted for over 20% of new car sales, a figure projected to reach 25% in 2025 and nearly 40% (47 million units annually) by 2030.
Moreover, new applications such as robotics and drones, driven by the AI revolution, are further accelerating battery demand.
These industries require high-capacity, high-energy-density, and fast-charging solutions—precisely the advantages silicon anodes provide.
According to QY Research, the global silicon anode material market is projected to grow at an average annual rate of around 40%, from USD 500 million in 2024 to approximately USD 4.7 billion by 2031.
SNE Research forecasts the market could reach USD 7 billion by 2035.
Industry experts believe this technology could also enable expansion into fine chemicals and specialty materials fields such as semiconductors and cosmetics.
- Vice Chairman Cho Hyun-Sang: Driving Value Creation through Technology and AI
Vice Chairman Cho Hyun-Sang is known for his management philosophy centered on value creation through technology, intellectual assets, and AI utilization.
Recently, he has expanded his focus to enterprise AI and physical AI, seen as next-generation AI technologies.
He has also maintained close collaboration and active exchanges with global companies possessing advanced technological and intellectual property capabilities.
It is reported that Vice Chairman Cho personally visited Umicore multiple times.
To finalize the agreement at what he identified as a critical timing window, as the EV industry begins to emerge from a prolonged stagnation and regain momentum, he personally led several overnight negotiations between the two companies—despite his concurrent duties as ABAC Chair during APEC preparations.
Through this initiative, HS Hyosung Group has further strengthened its growth portfolio, expanding into high-potential sectors such as carbon fiber (used in aerospace, future mobility, defense, and energy), battery materials, and AI/DX business models.
These additions complement its existing foundation in tire cord and advanced mobility materials, positioning the Group for sustainable long-term growth.
- Investment in Ulsan: Strengthening Domestic Industry and Job Creation
Following the acquisition, HS Hyosung plans to invest KRW 1.5 trillion over the next five years to establish large-scale silicon anode production capacity.
Ulsan, the birthplace of Hyosung Group 60 years ago, has been selected as the first investment site.
Although most operations have since relocated overseas—except for aramid fiber and automotive materials—the new investment is expected to reshore advanced production and create high-value domestic jobs.
By investing in core materials for next-generation batteries, one of South Korea's strategic industries, HS Hyosung aims to enhance the nation's global supply chain competitiveness across key sectors such as semiconductors, shipbuilding, and defense.
SOURCE HS HYOSUNG
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