SK Innovation has decided to merge its two subsidiaries, SK On and SK Enmove. SK On expects that the immersion cooling technology possessed by the absorbed SK Enmove will solve heating issues and enhance battery stability.
Immersion cooling refers to submerging heat-generating electronic devices like batteries and servers directly into a non-conductive liquid that does not conduct electricity, providing cooling. This method consumes less power and cools more quickly than air or water cooling, which use cool air or water to indirectly cool.
The merged entity of SK On and SK Enmove, which will launch on Nov. 1, is expected to experience business synergy effects centered around electric vehicles. SK On is focusing on electric vehicle batteries, while SK Enmove is developing specialized thermal management businesses for electric vehicles, including lubricants, refrigerants, and heating, ventilation, and air conditioning (HVAC).
The two companies anticipate that SK Enmove's immersion cooling technology will contribute to enhancing the stability of SK On's electric vehicle batteries and energy storage systems (ESS). Though there has been collaboration in the past, merging into one company will facilitate smoother technology development and information sharing. SK On plans to reduce fire or explosion risks through battery thermal control while also increasing energy efficiency.
For electric vehicle batteries, immersion cooling circulates an insulating cooling fluid inside the battery pack to dissipate heat. It maintains battery cell temperatures below a certain level during conditions of severe heating, such as rapid charging and overcharging. When temperatures are kept uniform, overall battery performance improves, and its lifespan extends.
SK On plans to apply immersion cooling technology to ESS batteries as well. ESS units are equipped with a substantial capacity of lithium-ion batteries, making it difficult to respond when a fire occurs.
Compared to Samsung SDI and LG Energy Solution, SK On, a latecomer, is intensifying its efforts in the ESS market. On the 11th of last month, a memorandum of understanding (MOU) was signed with L&F to supply cathode materials for lithium iron phosphate (LFP) batteries aimed at the North American ESS market, with plans to finalize ESS contracts as early as the second half of the year.
According to market research firm Market and Market Research, the global immersion cooling market, which was around 500 billion won last year, is projected to grow at an annual average of 18.5%, reaching 42 trillion won by 2040. This technology is gaining attention as essential for future industries, including electric vehicles, ESS batteries, and artificial intelligence (AI) data center servers.