4 days ago
KD Finechem Coolant Innovations for Sustainable Performance
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As technology continues to soar to new heights, one thing remains a constant: heat management. No system can perfectly utilize 100 percent of the energy it generates, and cooling is an enormous economic and safety challenge for everything from automobiles to IT server infrastructure. Furthermore, cooling is not exempt from the green transformation sweeping through industries. Future solutions require innovation, and Korea's KD Finechem is leveraging its decades of experience developing and supplying coolant in the automotive sector to tackle modern problems.
Founded in 1973, KD Finechem has been a major supplier of coolant to Korean automakers and is presently leading the industry in developing coolants suitable for electrical systems, such as EVs and IT infrastructure, and environmentally conscious coolants. CEO Hyun Jin Park says that the industry has shifted toward greener vehicles, and demand for specialized coolant is increasing. "This change created new opportunities for us because traditional ICE vehicle coolants were a long-established market dominated by legacy suppliers," he explains. KD Finechem entered a competitive market where major automakers already had established suppliers. However, with the rise of EVs and FCEVs, major players are now open to exploring new partnerships with companies with specialized cooling solutions expertise.
Hyun Jin Park, CEO, KD Finechem Co., Ltd. Credit: Courtesy of KD Finechem Co., Ltd.
Hyun Jin Park, CEO, KD Finechem Co., Ltd. Credit: Courtesy of KD Finechem Co., Ltd.
By working closely with major Korean automakers, KD Finechem developed the first EV-specific coolant, which established the company's credibility with other OEMs. Park says that new industries require agility to innovate. "While the EV market is growing, it is still relatively small from the perspective of major petrochemical companies," he states. As a privately owned company, KD Finechem can react quickly and has the flexibility to invest in emerging markets early, giving it the first mover advantage. "This is why we can dedicate more resources to R&D, particularly in areas like EV batteries and even data centers," Park explains.
The company's core concepts are safety and reliability, and its efforts have been centered around direct collaboration with OEMs and real-life applications. "Our expertise extends beyond coolant formulation—it's also about optimizing the entire system," Park says. For FCEVs, the company has developed a noncorrosive coolant that can be used with more economical materials than titanium. Coolant for ICE vehicles can short-circuit an EV battery, leading to a fire, so it developed a nonconductive coolant, which it is currently working to extend its lifespan. The company also looks to source ethylene glycol, which is currently derived from petrochemicals, from eco-friendly sources. It is working with a company that has successfully produced ethylene glycol, with positive initial tests. Park describes the company's customers' priorities as reliability, safety and customized compatibility with their high-value infrastructure. "Our ability to develop highly specialized solutions, even for low-volume applications, gives us a unique edge in markets that large players tend to overlook," he says.
KD's permeable fuel-cell coolant dye. Credit: Courtesy of KD Finechem Co., Ltd.
KD's permeable fuel-cell coolant dye. Credit: Courtesy of KD Finechem Co., Ltd.
This agility is evident in KD Finechem's adaptability. Park explains that the company can easily adjust without significant infrastructure expansion. Because all coolants share monoethylene glycol as a base material, transitioning to new water-soluble formulations is seamless. "This flexibility gives us a competitive edge, enabling us to scale production efficiently while minimizing additional investment," Park says. The company has tailored its coolants not only for EVs and FCEVs but also for batteries, energy storage systems (ESS), data centers and high-speed charging cables. With AI data centers increasingly prioritizing lower operational costs and greater efficiency, KD Finechem is well positioned to pivot and meet the demands of these rapidly growing sectors.
As the world continues to rely on technology, Park only sees KD Finechem's global opportunities growing. "Our customers include any industry that deals with heat management," he states. Automotive and IT remain core targets in Europe and the United States, where the company already has local production facilities. However, liquid cooling is growing in both personal computing and, theoretically, even aerospace. Park summarizes this reality, "In an ideal system, no heat would be generated because all energy would be perfectly utilized. But until that becomes reality, thermal management will remain essential."
Global Network. Credit: Courtesy of KD Finechem Co., Ltd.
Global Network. Credit: Courtesy of KD Finechem Co., Ltd.
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