SQM Iodine Plant Nutrition and SK Enmove sign key agreement to secure iodine supply for electric car coolants

SK Enmove—part of the SK Group, one of the largest conglomerates in South Korea—has been a leader in the lubricants industry and new energy development in Korea since 1968 and has more than 140 customers in 60 countries worldwide.

By securing iodine upfront through this agreement, SK Enmove is working to establish a stable value chain, ensuring an uninterrupted supply of high-quality materials for its products.

The signing ceremony took place in Santiago, Chile, and was attended by SK Enmove’s CEO, Won-ki Kim; Pablo Altimiras, CEO of SQM Iodine Plant Nutrition, and several other executives from both companies. The two companies plan to further negotiate supply volumes and prices in a definitive agreement.

Pablo Altimiras, CEO of SQM Iodine Plant Nutrition, commented, “For us, it is always important to take part in developing new products and technologies. Therefore, signing this HOA with SK Enmove, one of South Korea’s largest companies and a leader in lubricants and new energies, is a major milestone for SQM Iodine Plant Nutrition. It allows us to think ahead to a stable iodine supply for a currently non-existent use, demonstrating our world leadership in the iodine market and our capacity to innovate. This agreement is fully aligned with our strategy to continue to grow sustainably and with our purpose of supporting progress.”

For SK Enmove CEO Kim Won-ki, this agreement “will secure a solid foothold for production, bringing us one step closer to our quest for a stable supply of next-generation automotive coolants by collaborating with SQM, which has demonstrated its superior quality and production capabilities. With this, we will build a strong value chain with various collaborating global corporations and pursue global leadership as a representative energy-saving company.”

Through this agreement, SK Enmove seeks to ensure a constant and timely supply of high-purity iodine to meet the growing demand for coolants in the automotive industry. This iodine use technology does not currently exist in the market and is being developed by SQM Iodine Plant Nutrition and the Korean mega-corporation.

Iodine is widely used in products such as X-ray contrast agents, antiseptics and pharmaceuticals, but its production is concentrated in a few countries, including Chile, Japan and the United States.

Chile in particular represents more than half of the global supply of iodine. In its latest quarterly results for the second quarter of 2024, SQM announced expected sales of over 14,000 tons of iodine. This positions the company as a major player, accounting for approximately 35% of the world’s iodine supply.

Notably, earlier this year, SK Enmove signed a Memorandum of Understanding (MOU) with Hyundai Motor Group to develop next-generation refrigerants. The coolants under development by SK Enmove are designed to improve heating performance compared to existing automotive coolants.

Performance tests conducted on systems simulating Hyundai’s electric vehicle climate control systems have shown that the new coolant—which contains iodine—performs as well as traditional coolants, while reducing energy consumption in both heating and cooling.

About SK Enmove

Leaders in the lubricant industry in Korea since 1968, when they first ventured into the lubricant business. Now, SK Lubricants is expanding its business spectrum to compete in the global market. The company exports premium Group III base oils to more than 140 customers in 50 countries, as well as finished lubricant products to more than 60 countries, including Russia, China and the U.S. Its vision is to become the world’s leading player in the lubricants industry.

About SQM Iodine Plant Nutrition

SQM Iodine Plant Nutrition is a global company with operations in northern Chile. For 56 years, its products and solutions have been fundamental for strategic industries, promoting progress and well-being in essential sectors such as health, technology and food. With over 4,000 employees and commercial offices around the world, SQM Iodine Plant Nutrition exports its products to more than 100 countries, always fulfilling its purpose of developing unique capabilities that transform resources into life and progress.