Kumho Petrochemical to launch mass production of CNT for EV batteries this year

Kumho Petrochemical is set to begin mass production of carbon nanotubes (CNT) for use as conductive additives in electric vehicle batteries before the end of this year, as the downstream industry shows signs of recovery. The move is expected to accelerate the company's shift toward a higher-value materials business.

According to industry sources Wednesday, Kumho Petrochemical plans to begin commercial production of few-walled CNT (FWCNT) in the second half of this year. The company is currently seeking product approval from some customers.

CNT is a high-value material offering electrical conductivity 1,000 times greater than copper and tensile strength 100 times that of steel. Products fall into three broad types — multi-walled CNT (MWCNT), FWCNT and single-walled CNT (SWCNT) — with fewer walls corresponding to higher electrical conductivity.

The FWCNT Kumho Petrochemical is moving to mass-produce serves as a conductive additive in EV batteries, helping electricity flow smoothly inside the cell. Its superior conductivity compared with carbon black supports improvements in battery capacity, lifespan and energy density.

The company had originally planned to begin commercial sales of FWCNT in the second half of 2024, but pushed back the timeline as the EV battery market endured a prolonged slump.

The decision to target second-half production this year reflects a rebound in the downstream market. According to market research firm SNE Research, global EV battery usage in the first quarter of this year reached 244.6 GWh, up 9.1 percent from the same period last year. EV sales have also been on an upward trend so far this year.

Kumho Petrochemical had already expanded its CNT production capacity as part of a broader shift toward a higher-value business structure. Annual CNT output — once limited to 120 tons — has grown to 360 tons through successive scale-ups. If FWCNT mass production proceeds on existing CNT facilities, the profitability of the company's materials business is expected to improve.

The company plans to broaden its high-value product lineup starting with FWCNT mass production. With the basic petrochemical market suffering from oversupply driven by continued capacity expansion in China, the strategy is to increase output of high-value materials to weather the downturn.

Diversifying the CNT lineup is an immediate priority. Beyond FWCNT, the company aims to complete development of CNT for lithium iron phosphate (LFP) batteries this year and pursue commercialization next year.

The company is also building competitiveness in other high-value products. Solution styrene-butadiene rubber (SSBR) is a prime example — a high-performance synthetic rubber drawing attention as a key EV material. Kumho Petrochemical completed a 35,000-ton annual capacity expansion of SSBR last year and brought the new facilities into full operation in the first quarter. Affiliate Kumho Mitsui Chemicals has expanded its methylene diphenyl diisocyanate (MDI) production capacity by 300,000 tons over the past two years. MDI is a key raw material for polyurethane used in automobiles, construction and home appliances.