South Korean EV battery maker SK On is expanding its product portfolio to include prismatic batteries, a move aimed at turning around its business amidst a slowing global electric vehicle (EV) market. The company, a unit of energy group SK Innovation, is currently in talks with multiple automakers to secure supply deals for its new prismatic batteries.
SK On, which primarily produces pouch-type batteries for EV manufacturers like Ford, Hyundai, and Volkswagen, sees prismatic batteries as a key growth area. The company has already developed the necessary technology and is prepared to begin production once deals are finalized. While SK On is not planning to cut capital expenditure or research and development spending, it faces a challenging market environment.
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Rival LG Energy Solution has announced plans to reduce capital expenditure and adjust investment plans in response to the slowdown. SK On, however, maintains its target of achieving profitability in the second half of 2023. The company has implemented cost-cutting measures, including salary freezes for executives.
SK Innovation, SK On’s parent company, is exploring a merger with its gas affiliate SK E&S, which could provide crucial financial support to SK On. The company’s shift to prismatic batteries is part of a broader strategy to adapt to the changing EV market landscape and remain competitive in the long term.