November 21, 2024

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Kim Wone-kee (left), CEO of SK Enmove, and Pablo Altimiras, chief of SQM's iodine plant nutrition division, sign a heads of agreement for the supply of iodine in Santiago, Chile, Tuesday. (SK Innovation)

SK Enmove, a lubricant subsidiary of SK Innovation, has secured a stable supply of iodine by partnering with SQM, the world’s largest iodine producer based in Chile, in efforts to take the lead in the next-generation automotive refrigerants market, the company said Thursday.

As iodine is a crucial material for producing high-efficiency automotive refrigerants, SK Enmove plans to develop advanced refrigerants that offer superior cooling and heating performance in comparison to the existing products.

According to the company, details about the timing and quantities of the supply will be finalized upon the execution of the definitive agreement later on.

SQM announced in its second-quarter earnings that it expects annual iodine sales to exceed 14,000 tons this year, accounting for approximately 35 percent of the entire global iodine supply. The Chilean mining firm, which has been recognized for a stable production of high-quality iodine for over 20 years while minimizing environmental damage, joined the Initiative for Responsible Mining Assurance in 2020 to ensure ethical and eco-friendly mineral extraction practices.

“This collaboration with SQM, whose quality and production capabilities are well-verified, lays a solid foundation for the stable production and supply of next-generation automotive refrigerants," said Kim Wone-kee, CEO of SK Enmove.

“We will continue to build a robust value chain through partnerships with various global companies, aiming to become a leading global refrigerant company and a major energy-saving firm.”

Meanwhile, SK Enmove partnered with Hyundai Motor Group in January this year to develop next-generation automotive refrigerants.

According to SK Enmove, their refrigerant under development has shown better efficiency in tests conducted on Hyundai electric vehicle air conditioning systems while reducing energy consumption. In June, the new refrigerant received certification from the American Society of Heating, Refrigerating, and Air-Conditioning Engineers for its international compliance with safety and efficacy standards.

By Kan Hyeong-woo (hwkan@heraldcorp.com)