Hyosung Advanced Materials signed a long-term contract with Hanwha Solutions on April 3 to supply high-strength carbon fiber used in high-pressure containers.
Hyosung Advanced Materials announced that it has signed a long-term contract to supply Hanwha Solutions with high-strength carbon fiber to be used to reinforce fuel tanks for hydrogen vehicles for six years from 2021. The supply is worth about 160 billion won ($144 million).
The deal will allow Hyosung Advanced Materials, which secured stable orders and large customers, to continue to grow in the carbon fiber sector.
Although the carbon fiber market is led by Japan and the U.S., the carbon fiber of Hyosung Advanced Materials, which is a pure domestic material, has focused on the use of high-pressure containers based on its superior high-intensity material compared to its competitors.
It has been supplying them to major global high-pressure container companies for years.
Carbon fiber is used in compressed natural gas (CNG) fuel tanks or hydrogen fuel tanks in vehicles due to its safety and eco-friendly nature.
High-strength carbon fibers are applied to fuel tanks because of the need to inject gas under high pressure of hundreds of atmospheres.
In particular, it has an effect of improving driving performance and reducing emissions with reduced weight than conventional metal tanks.
Due to its high strength, high elasticity, and lightening characteristics, carbon fiber is expected to be expanded to various applications such as urban air mobility (UAM), aerospace, and ship fuel tanks.
Hyosung Advanced Materials began developing carbon fiber in earnest in 2008 and began production at its Jeonju plant in 2013, launching the carbon fiber brand "TANSOME®."
Hyosung Advanced Materials plans to invest 1 trillion won in its Jeonju plant by 2028 to secure an annual capacity of 24,000 tons of carbon fiber. Currently, the plant capacity has been expanded to 4,000 tons and is operating.
Hwang Jung-mo, CEO of Hyosung Advanced Materials, said, "Carbon fiber is a key material for responding to climate change and revitalizing the hydrogen economy. We will promote safe and clean new mobility through TANSOME's material technology."
