South Korea's SK On aims to best rivals with next-generation batteries
SK On is focused on honing its edge in thermal management technology, such as immersion cooling designed to boost the efficiency of batteries for AI data centres, energy storage systems and electric vehicles (EVs), Park Kisoo, head of the company's research and development arm, said. The battery specialist already is in talks with Ford Motor and Hyundai Motor to collaborate on the cutting-edge tech, he said.
A representative for Ford declined to comment. Hyundai did not immediately respond to a request for comment.
The push comes amid a broad reorganisation of the SK group, a leading South Korean conglomerate, which plans to merge money-losing SK On with more profitable sister company SK Enmove in a bid to stabilise its balance sheet. The move follows another in-group transaction by SK On's parent company a year ago with a similar goal of shoring up finances as the battery unit pursues aggressive expansion overseas.
The South Korean company operates two standalone battery plants in Georgia, which supply Ford and Volkswagen, and is planning another facility in the state with Hyundai. SK On and Ford received a US$9.63 billion loan from the US government late last year to build two battery factories in Kentucky and another in neighbouring Tennessee. They have paused plans for a battery plant in Canada. SK On also has battery production facilities in China, Europe and at home in South Korea.
Park said that his R&D centre will spur internal efforts to diversify suppliers and strengthen supply chains to bolster the company's US production and ramp up its energy storage business there.
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EV demand is set to decline further with the looming end of US tax credits in September, but the R&D chief sees global sales rebounding as early as late 2027, if automakers can close the price gap between EVs and petrol-powered vehicles.
'For many EV drivers, there's no going back, and the penetration rate is only set to grow in China and elsewhere,' Park said.
SK On is also targeting the development of solid-state batteries by the end of 2027 and mass production of them from 2029, he said. Semi solid-state batteries, a hybrid version of current and next-generation tech, could be commercialised even sooner.
'When the world of solid-state batteries arrives, it will definitely be first applied in pouch-type cells in which we already have a technological edge,' Park said. 'That could be a weapon that can help us beat China.'
Solid-state batteries are more powerful, durable, faster to charge and safer than the lithium-ion cells currently dominating the EV sector. That's set off a global race to bring those batteries to market among top suppliers, including China's Contemporary Amperex Technology Co Limited and BYD, as well as South Korea's LG Energy Solution and Samsung SDI. BLOOMBERG
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