SK Enmove eyes growth in e-fluids, thermal management

SK Enmove, the lubricant-making unit of SK Group, on Tuesday unveiled its new ZIC e-FLO brand to expand its presence in the burgeoning energy-efficient fluid market for electric vehicles and data centers.

The new strategy builds upon ZIC's legacy as a pioneering lubricant brand in Korea, evolving its range to focus on power efficiency, driven in part by the industry's broader shift toward sustainable energy solutions.

"ZIC's vision now extends beyond traditional engine oils, leveraging decades of expertise to set new industry benchmarks in more efficient energy solutions," said SK Enmove CEO Park Sang-gyu at the ZIC Brand Day conference held in Seoul.

Contrary to generalized assumptions that the market expansion for EVs might dilute lubricant demand, the CEO stressed that specialized formulations will play a pivotal role.

"EVs still have moving parts. They need specialized lubricants to ensure efficient operation, be it for cooling their motors or minimizing friction in gears. SK Enmove is well-prepared to meet these evolving needs," Park explained.

Anticipating the power efficiency market's growth to 54 trillion won ($40.7 billion) by 2040, the company plans to roll out products enhancing efficiency in sectors such as EVs, data centers, and batteries, under the new ZIC e-FLO brand.

Data from Bloomberg New Energy Finance suggests that EVs will constitute approximately 48 percent of the vehicle market by 2040. Complementing this surge, the lubricant market catering specifically to EVs is estimated to grow to 12 trillion won.

In its efforts to diversify its business portfolio, SK Enmove is also eyeing the thermal management sector within the power efficiency market. With rising electricity usage and equipment density, the sector has become crucial for heat control and consistent power delivery. The company expects the market for liquid cooling, applicable in areas like data centers and EV batteries, to escalate from under 1 trillion won in 2020 to 42 trillion won in 2040.

SK Enmove has already invested in GRC, an American firm specializing in data center liquid cooling systems, and partnered with Dell Technologies to commercialize advanced cooling technologies.

While EVs are gaining traction in Europe and the US, SK Enmove expects demand for internal combustion engines to remain strong in regions like Southeast Asia, Southwest Asia and the Middle East. The company intends to capitalize on this sustained demand, aiming to boost its market share with more efficient low-viscosity engine oils.