Next-generation refrigerants for electric vehicles: an interview with Cho Dong-seop

The transition to cleaner energy depends not only on renewable power and batteries, but also on the innovations that make energy systems more efficient, namely cooling technologies. Refrigerants and thermal management solutions are one way to reduce energy consumption in electric vehicles. In this interview, Cho Dong-seop shared insights into the growing demand for advanced thermal management solutions and how innovations in cooling technologies could contribute to a more sustainable energy future, particularly in AI infrastructure.

First, could you tell us a bit about what you’re currently working on?

I work at SK Enmove, a company that originally operated in the engine oil business, and I’m currently in charge of business development. So, while the core business areas of Enmove have traditionally been lubricants and base oils—which are the raw materials for lubricants—I’m now working in the HVAC Business Team as part of our business development efforts, which refers to the heating, ventilation, and air conditioning sector, and within that, we’re responsible for new products—such as refrigerants and cooling agents—that serve as consumables within the entire HVAC system. While the team is developing these new products, my role isn’t directly involved in the development process itself; instead, I focus on business development, feasibility studies, and meeting with clients for sales.

Are there any advanced technologies, such as solutions for reducing energy consumption or peak power demand, that the business team has introduced that have brought about significant changes?

To explain our business in a bit more detail, we started by signing an MOU with Hyundai Motor Company. When we drive a car, we turn on the air conditioner, right? There’s a refrigerant used in the air conditioning system, and that refrigerant has ultimately had to evolve due to regulations. When we were young, there was even talk that air conditioners shouldn’t be used because the refrigerant was destroying the ozone layer. In the past, we focused solely on the performance of these refrigerants when incorporating them into air conditioners or H100 systems, but it turned out they caused severe environmental damage. As a result, the EU, in particular, has been implementing very strict regulations on them.

So, the refrigerants we use today are, in a sense, highly advanced substances that have undergone many regulatory changes. However, there are concerns that even these refrigerants, once released into the atmosphere, break down into byproducts, and that these byproducts could be harmful to human health or the environment. Consequently, there is a growing movement in Europe to regulate the refrigerants currently in use as well. Initially, regulations were slated to take effect around 2028, but the timeline is now gradually being pushed back. From the perspective of automakers, they need to prepare for this in advance so they can develop the refrigerants to be used in future vehicles.

That’s why Hyundai Motor Company and our company have signed an MOU and are currently developing a new refrigerant for vehicles. However, the process doesn’t end with simply developing the refrigerant; once the substance is created, we must optimize the system to ensure it’s suitable for use in vehicles, verify compatibility with existing system components, and conduct various evaluation tests. So we’re still in the process of conducting those evaluations, and because we’re in the midst of this work, as you mentioned, it’s a bit difficult to say that it’s already on the market and contributing to environmental protection or improved energy efficiency right now. However, it’s true that the main driving force behind what we’re doing is precisely the energy efficiency and environmental concerns you mentioned.

So, this new cooling system we’re developing—which I mentioned earlier as “PIPAS”—does not violate those regulations. It also complies with the new regulations that Europe is planning to implement. And if we look at conventional cars, we only had to worry about keeping the air conditioning cool. But now that we’ve moved to electric vehicles, we also have to focus on heating. Why is that? In the past, we used an engine, which gets extremely hot. So when we turned on the heater, we could use that engine heat to warm the cabin. But since electric vehicles don’t have an engine, that heat source is lacking. 

This refrigerant is a fluid capable of handling both heating and cooling. The refrigerant we’re developing is designed to provide efficient heating for electric vehicles while consuming less electricity. We use a metric called COP (Coefficient of Performance) to measure efficiency, and we’re saying that our refrigerant’s COP is about 20% to 30% better than that of conventional refrigerants. This means that using the same amount of electricity, efficiency improves by about 20–30%. So, if our product is well-received and enters the market, I believe it will have a positive impact.

Recently, AI data centers have also been growing rapidly, making cooling technology even more important. Do you think these changes could present new opportunities for the business you’re currently involved in?

Yes, it will certainly present new opportunities. It’s not our team, but the team next to us that’s developing Axin cooling fluid and running the Axin cooling business. So, data centers are now one of the key target customers for immersion cooling. As heat generation increases, they’re exploring whether it’s feasible to move beyond existing cooling methods and adopt a fully immersive cooling approach using a fluid—and they’re currently reviewing this. However, the market for this hasn’t fully matured yet, and while it’s an opportunity for us, as you mentioned, it’s a very hot topic right now. That’s why leading companies around the world are all keeping an eye on it. 

They’re looking to see what opportunities might arise there. That’s why there are quite a few competitors in this field of immersion cooling—where components are submerged in a fluid—and since this is a market that’s just beginning to take off, this isn’t the only approach available. So, you could submerge the components in water, or you could circulate a coolant through each individual circuit to keep them cool—various methods are being explored. While it’s hard to say exactly how things will play out, as you mentioned, there are definitely opportunities. You can think of it as a market where all relevant companies are actively seeking opportunities.

Earlier, you mentioned that you’re communicating directly with consumers as well. So, if companies adopt energy-efficient solutions or technologies, what would be the biggest benefit customers would notice? How would they best experience it?

In a way, we’re a company that produces refrigerants and creates cooling systems, and our primary customers are ultimately the automakers and home appliance manufacturers that use our products. They then manufacture finished products and sell them to end consumers like us. Ultimately, I think there are one or two main factors. First, there are regulations. Since environmental changes—which consumers don’t necessarily notice—unfold over a very long period, governments and relevant agencies often impose regulations on companies to address these long-term changes or the harmful effects that people aren’t aware of. In such cases, even if it means slightly higher costs, companies must comply with these regulations in order to sell their products in that region or country. Second, as you mentioned, from our perspective, the fact that driving range decreases in winter is something everyone who drives an electric vehicle is aware of.

Personally, I drive an internal combustion engine vehicle, and that reduced range is a major hurdle for me when considering purchasing an electric vehicle. So, for those who have already purchased an electric vehicle, by improving energy efficiency—even when the heater is on in winter—we can preserve more driving range compared to competing vehicles. So, for example, if a conventional solution can travel 400 kg on a single charge, ours might go 420 km—though, of course, it’s difficult to achieve such a dramatic change. However, as these incremental improvements accumulate, consumers can travel farther while spending the same amount on charging costs and time, so there’s real utility there. Ultimately, whether it’s Hyundai Motor or home appliance manufacturers, they’re all competing globally. So, these improvements become key marketing selling points in that competition.

Finally, you mentioned that we haven’t yet achieved massive changes in terms of energy consumption reduction or power savings. What do you think is the most critical challenge we need to address moving forward to achieve those changes?

As I mentioned, we’re currently in the business development phase, but the product hasn’t gone into mass production yet. To move to mass production, we’ll need to fully comply with all the evaluation procedures with customers that I mentioned earlier without any issues. Also, when developing a business like this, things rarely go as smoothly as a well-oiled machine. Realistically, we have to build things from scratch, make changes, and overcome many obstacles—it’s a process that involves breaking through and resolving numerous challenges. 

So it’s not as simple as saying, “The evaluation went well, so we’re done,” or “Our product performs well, so we’re done.” Close communication and collaboration with the customer throughout the process are essential. Since the customer is also reviewing alternative solutions internally, the most important consideration is how we can demonstrate that our solution offers better performance and advantages over those alternatives, ultimately convincing the customer to choose ours. Ultimately, I think the best scenario is finding a great partner—one with whom we can maintain a collaborative relationship until the very end and who is willing to work with us to overcome any difficulties or obstacles that arise.