Envioneer Co., a South Korean composite materials manufacturer, and Toray Advanced Materials Korea Inc. joined forces to launch businesses of aromatic polyamide (aramid) fiber, a key material of insulation paper used for electric vehicles. The two companies signed an agreement for a strategic partnership on June 14, Envioneer said.
Toray will exclusively provide meta-aramids, a highly strong and heat-resistant aramid, to Envioneer until 2035. Envioneer will start mass-producing aramid paper in 2025 under the agreement.
Regarded as “super fibers,” aramid fibers are strong and heat-resistant with higher than a 500-celsius degree melting point. As they are relatively easy to process and have high electric insulation, the fibers are used in EV motors, ultra-high voltage transformers and equipment for the aerospace and military. Aramid fibers as thick as five millimeters can endure a weight of two tons.
The two companies will complete building a system to mass-produce aramid paper by 2025 and then enter the EV insulator market, as well as cooperate in tech development, marketing and sales. Aramids for EV insulators generate over 60% of aramid operating profits, according to industry watchers. US chemical giant DuPont de Nemours Inc. is known as the largest player in the global market of aramids for EV insulation.
Han Jeong-cheol (left), CEO of Envioneer, and Jeon Hae-sang, CEO of Toray Advanced Materials Korea on June 14, 2022
“We see great opportunities in aramid for EV insulator as the fiber is in low supply globally. We will intensify our competitive edge in the super fiber market with Toray,” said Han Jeong-cheol, CEO of Envioneer.
“Toray will exclusively supply aramid components to Envioneer by 2035. We have produced meta-aramid components since 2010 and own in-house dry-spinning technologies optimized for manufacturing insulation paper materials,” said Jeon Hae-sang, CEO of Toray Advanced Materials Korea.
Listed on Korea’s secondary bourse Kosdaq, Envioneer produces filters for water purification and liquid filtration, medical materials for diagnostic pads and composite materials for cars and nonwovens. The firm specializes in wet-laid processing, a technique to keep nonwoven pore sizes uniform and basis weights constant.
The company posted 8.9 billion won ($6.9 million) in sales and 766.9 million won in operating losses last year, according to its financial disclosure on the official website. Its stock closed at 14,000 won on Thursday, up 2.94%.
Toray Advanced Materials Korea is a Korean affiliate of Japan-based Toray Industries Inc., an industrial chemical giant. The company makes polyester films, display materials, carbon fibers, resin chemicals and other state-of-the-art materials.
Write to Byung-Keun Kim at bk11@hankyung.com Jihyun Kim edited this article.
