Asahi Kasei, the world's No. 1 membrane separationcompany, plans to markdown the price of their wet membrane separation products by 20%. Wetmembrane separation is one of the most important materials used in the production of nickel-based high-spec batteries by Korean battery companies. Following this sudden price change by the leading company, tension is rising in the domestic membrane separationindustry.
On the 14th, it was reported that Asahi Kasei was pushing to lower the average price of wet membrane separation, a key material for secondary batteries. They proposed a 20-30% price decrease compared to Korean secondary battery manufacturers. It is common knowledge industry-wide that the price of the membrane separationpre-processing is $1 per square meter while the membrane separationpost processing is $1.3. Wet membrane separation is currently used in nickel-based high-spec batteries made by LG Energy Solution, SK-on, and Samsung SDI.
This would not be the first time Asahi Kasei has lowered the price of their products. However, considering that the company has been passive in material product facility investment and price reduction of high value-added products recently, the change is relatively significant.
As Korean battery companies are highly dependent on this material, it can be seen as a strategy to further solidify cooperation in the materials industry. A material industry official said, "Asahi Kasei is the world's No. 1 company in the wet membrane separation market, but Panasonic is the only company in their country that purchases their wet membrane separation products. Asahi Kasei is very aware of this situation.”
It can also be seen as a response to South Korean conglomerates such as LG and SK entering the materials industry and expanding their business areas. SK IE Technology (SKIET), which is under SK Innovation, still maintains its world leader position in membrane separation along with Asahi Kasei. After separatingfrom LG Energy Solution, LG Chem expanded their business to membrane separation. Samsung SDI is strengthening their position by investing in W-Scope strategy. They are planning to commercialize membrane separation such as Enerever Battery Solution and Dongwoo Fine-Chem.
With Asahi Kasei's membrane separation price decrease, domestic membrane makers such as LG Chem and SKIET are also struggling to come up with their own countermeasures. Asahi Kasei is the world's No. 1 company in terms of sales in all areas of membrane separations including wet membrane separation and dry membrane separation.They arealso solidifyingtheir price competitiveness bysecuring and using manufacturing facilities in their own country.
A material company official said, "The news of Asahi Kasei's price decrease is a hot topic in the industry. Preparation is needed as they have price competitiveness as well as the productscompared to the material industry such as LG and SK."
By Staff Reporter Jiwoong Kim (jw0316@etnews.com)