SKC co-invests $80 mn in battery materials maker Nexeon

Chemical materials producer SKC Co. said on Jan. 26 its consortium has completed an $80 million investment in UK battery materials startup Nexeon Ltd. The SKC-led consortium includes Korean private equity firms BNW Investment Co., SJL Partners Co. and Kiwoom Private Equity Corp.

The investment took place nearly three months after SKC’s announcement of forming the consortium last November. At the time, the South Korean conglomerate SK Group's affiliate said it will inject $33 million.

SKC has secured stakes in Nexeon as well as the silicon anode material business license through the investment. The consortium will establish a company this year to produce silicon anode materials from 2024, and SKC will lead the manufacturing business.

The consortium was formed after SKC withdrew a plan to set up a joint venture with Nexeon last October. The JV plan raised worries about an overlap investment within SK Group as SK Materials Co., the group's gas manufacturer, was planning to jointly invest 850 billion won with US startup Group14 Technologies Inc. to build a battery material plant in Korea. 

Nexeon produces silicon anode materials that upgrade the performance of electric vehicles. Compared with conventional graphite anodes, silicon anodes halve battery charging time and quadruple energy storage. The global anode materials market will grow to $2.9 billion in 2025 and reach $14.6 billion in 2030, experts say.

Write to Kyung-Min Kang at kkm1026@hankyung.com
Jihyun Kim edited this article.