SK On is at the forefront of the new generation of mobility, paving the way for cleaner and more convenient forms of transportation. With its innovative battery technologies, SK On has become a key player in the widespread adoption of EVs. Since its establishment in 1982, SK has been dedicated to creating a cleaner transportation future.
With almost 40 years of technological research and innovation, SK On emerged as an independent company in 2021, marking the beginning of its journey as a leading force in EV batteries. With a strategic focus on cutting-edge battery technologies, the company is actively contributing to the widespread adoption of electric vehicles, aiming to become the world’s largest EV battery maker by output by 2030.
SK On’s Journey to Prominence
Since its inception in 1982, SK has maintained a long-term vision for a sustainable future in transportation. After nearly four decades of dedicated technological research and innovation, SK On emerged as a standalone entity in October 2021, marking the beginning of a new era in the company’s evolution. Despite being a relatively young player in the industry, SK On has rapidly climbed the ranks to become the fifth-largest supplier of EV batteries globally, boasting a capacity of 13.2 gigawatt hours.
Leadership and Ambitious Goals
Under the leadership of Co-CEO Jee Dong-seob, SK On has set a bold goal – to become the world’s leading electric vehicle battery maker by 2030. In an exclusive interview from Seoul, Jee expressed confidence in achieving this ambitious target, highlighting the company’s impressive growth. With an annual battery sales figure reaching $2.3 billion in 2021, SK On has positioned itself as the world’s fastest-growing battery maker.
Global Expansion and Strategic Partnerships
SK On recognizes the importance of international expansion and collaboration to realise its vision. The company estimates the global EV market will reach 2.5 terawatt hours by 2030, valued at least $263 billion. SK On’s strategic plan includes nurturing a global network of partnerships and establishing factories, particularly in Europe, the world’s second-largest EV market. Notably, SK On has formed a joint venture with U.S. automaker Ford for an EV battery factory in Turkey, with plans for annual production capacity ranging from 30gwh to 45gwh by 2025.
Investing in overseas factories is a strategic move to reduce logistics costs and ensure proximity to major EV markets. This move aligns with the industry trend, as major Western automakers, including Ford and Volkswagen, directly invest in cell production. SK On’s proactive approach includes opening plants in China and Hungary, with additional plans for expansion in the U.S.
Strategic Partnership with Ford
SK On’s collaboration with Ford has been pivotal in its global expansion strategy. The joint venture, known as BlueOval SK, aims to produce batteries for Ford’s electric vehicles. This partnership represents a significant investment of $8.9 billion, making it the largest-ever manufacturing investment by any automotive manufacturer in the U.S. The collaboration underscores the commitment to securing unparalleled competitiveness in the global EV market.
Navigating the Challenges of the Global Market
As the demand for EVs continues to rise, the global market for rare earth metals – cobalt, lithium, and nickel – faces volatility. SK On, like its peers, grapples with the impact of supply chain constraints. The CEO, Jee Dong-seob, emphasizes the importance of SK On’s proprietary technology, rooted in a decade of battery research by the SK Group. The company plans to invest at least $1 billion in research and development over the next two years, focusing on uniquely nickel-rich EV batteries.
Proprietary Technology and Safety Focus
SK On’s proprietary technology, the result of SK group’s decade-long battery research, sets the company apart. With a focus on uniquely nickel-rich EV batteries, SK On plans to invest at least $1 billion in research and development over the next two years.
These nickel-rich batteries offer higher charging density than lithium-based batteries, enhancing efficiency and range. SK On’s commitment to safety is evident in its unrivaled safety record. Out of approximately 350 million battery cells manufactured, none have caught fire. The company attributes this achievement to its unique separator technology, known as “z-folding,” which minimizes fire risks.
Diverse Battery Portfolio
SK On’s current battery portfolio includes nickel-rich batteries, lithium-ion batteries, and LFP cells. The company recognizes the need for batteries with different characteristics to cater to diverse vehicle types and consumer preferences. For instance, prismatic batteries offer stability for longer trips, while pouch batteries are more portable and suitable for smaller EVs. SK On is also developing solid-state and compact batteries to address battery endurance and size challenges.
Final Thoughts
SK On’s commitment to innovation, sustainability, and safety has positioned it as a leading player in the EV battery industry. With ambitious goals for the future and strategic investments in global expansion, the company is well-positioned to capture opportunities in the growing EV market. SK On’s proprietary technology and diverse battery portfolio enable it to meet the evolving needs of the industry while contributing to a cleaner and more sustainable transportation ecosystem.
