Latest news with #LeeSeok-hee
Korea Herald
2 hours ago
- Automotive
- Korea Herald
SK Innovation reshuffles core units to rescue ailing battery business
$5.8b funding plan unveiled as energy giant seeks to reduce debt, stabilize SK On operations SK Innovation announced on Wednesday that it has decided to merge two of its subsidiaries -- SK On and SK Enmove -- as the Korean energy firm looks to keep its ailing electrification business afloat amid mounting losses. According to the announcement, battery producer SK On will acquire SK Enmove, a lubricant maker, with the aim of launching a new entity on Nov. 1. SK Innovation pointed out that SK On's battery business for electric vehicles and energy storage systems, together with SK Enmove's base oil, lubricant, liquid immersion cooling and EV refrigerant businesses, will create synergy when dealing with clients in the auto industry by offering package deals and cross-product offers. 'We will present a higher level of competitiveness on the global stage as we expect synergy from the merger, combining the two companies' technologies and business capabilities,' said Lee Seok-hee, CEO of SK On, during a press conference at SK Seorin Building in central Seoul. SK Innovation also laid out plans to raise a total of 8 trillion won ($5.8 billion) this year through rights offerings and stabilize the company's financial structure. SK Innovation will pursue a 2 trillion won paid-in capital increase by third-party allotment and the issuance of 700 billion won worth of perpetual bonds. SK On aims to raise 2 trillion won through a third-party allotment rights offering, while SK IE Technology will raise 300 billion won via a rights offering. SK Innovation will look to secure an extra 3 trillion won by the end of this year. SK Inc., the holding company of SK Group, which has a 55.91 percent stake in SK Innovation, will invest 400 billion won in SK Innovation's 2 trillion won paid-in capital increase by third-party allotment. SK Inc. will sign price return swaps, or PRS, for the remaining 1.6 trillion won in rights offerings, to be underwritten by several securities companies. SK Innovation, which owns 100 percent of SK On, will sign PRS deals for SK On's 2 trillion won third-party allotment rights offering and SK IE Technology's 300 billion won rights offering with the participating financial entities. The company added that it will reduce its borrowings by over 1.5 trillion won by selling off non-essential assets before the end of the year. SK On has yet to become profitable amid a stalling global EV market. The company logged an accumulated operating loss of 3.22 trillion won as of the first quarter this year since it spun off from SK Innovation in October 2021. SK On also held about 23.3 trillion won in net borrowings as of the first quarter, accounting for approximately 70 percent of parent company SK Innovation's total net borrowings. With Wednesday's rebalancing decision, SK Innovation said it plans to achieve 20 trillion won in earnings before interest, taxes, depreciation and amortization, or EBITDA, and reduce its net borrowings to under 20 trillion won by 2030 to maximize shareholder benefits. 'By improving EBITDA and reducing net borrowings through the portfolio rebalancing of our businesses and financial structure, we will achieve top-tier financial health,' said Jang Yong-ho, executive president of SK Innovation, during the press conference. Jang dismissed the possibility of the new entity going public for now, saying that the company will focus on enhancing the profitability of SK On's battery businesses. SK Innovation has been taking various measures to improve its financial structure, merging with SK E&S in November last year, while SK On merged with SK Trading International and SK Entem between November last year and February this year.
Korea Herald
23-07-2025
- Automotive
- Korea Herald
CATL's ‘salt battery': Cheaper EVs or chemistry compromise?
Chinese battery giant challenges EV norms with low-cost sodium-ion cells, but experts question energy limits CATL, the Chinese battery behemoth, is poised to shake up the electric vehicle landscape with sodium-ion batteries, or 'salt batteries,' with mass production for mainstream EVs scheduled within this year. These cells are expected to offer an even greater cost advantage over CATL's current lithium iron phosphate offerings, further pressuring South Korean battery rivals already struggling to challenge China's dominance in the electrified vehicle sector. Contrary to projections from Korean companies, which had anticipated CATL's sodium-ion cells would be better suited for energy storage systems, CATL plans to launch its 'Naxtra' battery for passenger vehicles by December. The battery reportedly offers an energy density of 175 watt-hours per kilogram and a range of 500 kilometers on a single charge. A key marketing highlight is the battery's exceptional performance in cold weather, surpassing that of existing lithium-ion technologies, including Korea's nickel cobalt manganese products and the LFP cells whose production is dominated by China. Cheaper than LFP, easier to produce CATL's sodium-ion battery launch presents an unwelcome challenge for Korean battery manufacturers, who have yet to begin mass production of LFP cells for EVs. Addressing China's sodium battery innovation, SK On CEO and President Lee Seok-hee reportedly said in a recent closed-door meeting, 'We need to closely monitor technological trends in sodium-ion cells for the budget-friendly EV market.' The nickname is misleading: Sodium batteries don't actually have salt in them. But one of their biggest advantages is their lower cost and more readily available raw materials compared to lithium-ion cells. According to data from Shanghai Metals Market, battery-grade sodium carbonate was priced at $598.18 per ton as of Tuesday, while lithium carbonate cost $9,612.58 per ton. 'Sodium-ion batteries could become significantly cheaper than LFP — possibly half the cost — once production is optimized,' said a senior researcher at a major Korean battery company. 'Unlike lithium, which shows drastic price fluctuations due to limited reserves, sodium can be easily sourced from sodium chloride or sodium hydroxide, both widely available in seawater.' The researcher added that the manufacturing process for sodium-ion and lithium-ion cells is largely 'exchangeable,' potentially lowering equipment costs for the new battery chemistry. The simplicity of the production process is another reason sodium-ion batteries are advancing more rapidly toward commercialization than other next-generation technologies, such as lithium-metal batteries, which are currently being pursued by a joint partnership between Hyundai Motor Group and SES AI. 'The electrode slurry used in salt batteries is usually softer and stickier than in lithium-metal cells. This allows for more uniform coating on current collectors such as aluminum foils,' noted the researcher. 'In contrast, lithium-metal batteries often face challenges like dendrite formation, which can lead to battery fires.' Premature hype? Despite the promising innovation, industry insiders remain skeptical about sodium-ion batteries replacing LFP or NCM cells due to their inherently lower energy density. Last month, CATL began mass production of a 24V start-stop integrated sodium-ion battery for heavy-duty trucks. However, as the name suggests, it is primarily designed to start engines or power auxiliary systems in internal combustion engine vehicles, not to drive fully electric heavy trucks, which require high-voltage packs. 'Due to its larger ionic radius and a relatively low average operating voltage of around 3.2 volts per cell, sodium-ion lags in energy density compared to lithium-ion,' said an industry source who requested anonymity. 'CATL's 150-175Wh/kg energy density is significantly lower than NCM's approximately 500Wh/kg. Not to mention its disadvantage to maintain stable performance in high-voltage conditions of over 4.2V.' Batteries with low energy density are typically used in budget EVs rather than in electric SUVs or high-performance models that require longer ranges and higher power. Although CATL claims a 500 km range and stable performance in cold weather, such batteries are likely to experience greater real-world range drops than those with higher energy density. 'Sodium-ion batteries offer commercial viability in cost-sensitive segments, but replacing lithium-ion cells remains a challenge,' the source added. The senior researcher agreed, noting, 'Our company views salt batteries as one of many next-generation battery technologies. We don't necessarily see them as direct replacements for LFP or NCM.' Among Korean battery makers, only LG Energy Solution is aiming for sodium-ion battery commercialization for uninterruptible power supplies and EVs by 2030. Samsung SDI and SK On are still exploring potential development paths. Meanwhile, Fortune Business Insights projects the global sodium-ion battery market will grow from $18.2 billion in 2025 to $203.2 billion by 2032, reflecting more than tenfold growth over the period. hyejin2@
Korea Herald
23-07-2025
- Automotive
- Korea Herald
CATL's 'salt battery': Breakthrough or budget hype?
Chinese battery giant challenges EV norms with low-cost sodium-ion cells, but experts question energy limits CATL, the Chinese battery behemoth, is poised to shake up the electric vehicle landscape with sodium-ion batteries, or 'salt batteries,' with mass production for mainstream EVs scheduled within this year. These cells are expected to offer an even greater cost advantage over CATL's current lithium iron phosphate offerings, further pressuring South Korean battery rivals already struggling to challenge China's dominance in the electrified vehicle sector. Contrary to projections from Korean companies, which had anticipated CATL's sodium-ion cells would be better suited for energy storage systems, CATL plans to launch its 'Naxtra' battery for passenger vehicles by December. The battery reportedly offers an energy density of 175 watt-hours per kilogram and a range of 500 kilometers on a single charge. A key marketing highlight is the battery's exceptional performance in cold weather, surpassing that of existing lithium-ion technologies, including Korea's nickel cobalt manganese products and the LFP cells whose production is dominated by China. Cheaper than LFP, easier to produce CATL's sodium-ion battery launch presents an unwelcome challenge for Korean battery manufacturers, who have yet to begin mass production of LFP cells for EVs. Addressing China's sodium battery innovation, SK On CEO and President Lee Seok-hee reportedly said in a recent closed-door meeting, 'We need to closely monitor technological trends in sodium-ion cells for the budget-friendly EV market.' The nickname is misleading: Sodium batteries don't actually have salt in them. But one of their biggest advantages is their lower cost and more readily available raw materials compared to lithium-ion cells. According to data from Shanghai Metals Market, battery-grade sodium carbonate was priced at $598.18 per ton as of Tuesday, while lithium carbonate cost $9,612.58 per ton. 'Sodium-ion batteries could become significantly cheaper than LFP — possibly half the cost — once production is optimized,' said a senior researcher at a major Korean battery company. 'Unlike lithium, which shows drastic price fluctuations due to limited reserves, sodium can be easily sourced from sodium chloride or sodium hydroxide, both widely available in seawater.' The researcher added that the manufacturing process for sodium-ion and lithium-ion cells is largely 'exchangeable,' potentially lowering equipment costs for the new battery chemistry. The simplicity of the production process is another reason sodium-ion batteries are advancing more rapidly toward commercialization than other next-generation technologies, such as lithium-metal batteries, which are currently being pursued by a joint partnership between Hyundai Motor Group and SES AI. 'The electrode slurry used in salt batteries is usually softer and stickier than in lithium-metal cells. This allows for more uniform coating on current collectors such as aluminum foils,' noted the researcher. 'In contrast, lithium-metal batteries often face challenges like dendrite formation, which can lead to battery fires.' Premature hype? Despite the promising innovation, industry insiders remain skeptical about sodium-ion batteries replacing LFP or NCM cells due to their inherently lower energy density. Last month, CATL began mass production of a 24V start-stop integrated sodium-ion battery for heavy-duty trucks. However, as the name suggests, it is primarily designed to start engines or power auxiliary systems in internal combustion engine vehicles, not to drive fully electric heavy trucks, which require high-voltage packs. 'Due to its larger ionic radius and a relatively low average operating voltage of around 3.2 volts per cell, sodium-ion lags in energy density compared to lithium-ion,' said an industry source who requested anonymity. 'CATL's 150-175Wh/kg energy density is significantly lower than NCM's approximately 500Wh/kg. Not to mention its disadvantage to maintain stable performance in high-voltage conditions of over 4.2V.' Batteries with low energy density are typically used in budget EVs rather than in electric SUVs or high-performance models that require longer ranges and higher power. Although CATL claims a 500 km range and stable performance in cold weather, such batteries are likely to experience greater real-world range drops than those with higher energy density. 'Sodium-ion batteries offer commercial viability in cost-sensitive segments, but replacing lithium-ion cells remains a challenge,' the source added. The senior researcher agreed, noting, 'Our company views salt batteries as one of many next-generation battery technologies. We don't necessarily see them as direct replacements for LFP or NCM.' Among Korean battery makers, only LG Energy Solution is aiming for sodium-ion battery commercialization for uninterruptible power supplies and EVs by 2030. Samsung SDI and SK On are still exploring potential development paths. Meanwhile, Fortune Business Insights projects the global sodium-ion battery market will grow from $18.2 billion in 2025 to $203.2 billion by 2032, reflecting more than tenfold growth over the period. hyejin2@
Yahoo
29-04-2025
- Automotive
- Yahoo
SK On in battery deal with US EV start-up Slater Auto
South Korean battery manufacturer SK On Company Ltd announced this week that it has signed a supply agreement with US-based electric vehicle (EV) startup Slate Auto, strengthening the company's position as a leading battery supplier to the North American automotive industry. SK On signed an initial agreement to supply around 20 gigawatt-hours (GWh) of US-made nickel-cobalt-manganese (NCM) batteries to Slate between 2026 and 2031, with an option to increase volumes if required. The batteries will be used to power the automaker's recently unveiled electric pickup truck. SK On, a subsidiary of South Korea's chemicals conglomerate SK Group, has invested heavily to establish a strong early presence in the North American EV supply chain. The company currently operates two battery plants in the US and is building four additional plants in partnership with automakers in the region, including with Ford Motor Company under their Blueoval SK joint venture. SK On's CEO, Lee Seok-hee, said in a statement: 'The partnership with Slate demonstrates how our US manufacturing capabilities are enabling more effective and flexible support for innovative customers. North America is a key market for us, and we are committed to delivering reliable, high-quality batteries that support our partners in making EVs more accessible, while reducing emissions and advancing sustainable mobility.' SK On said the partnership with Slate marks the company's 'strategic move into more affordable EV market segments,' having previously focused more on supplying batteries for premium EV models. Slate's CEO, Chris Barman, pointed out that his company's 'truck platform is so customizable that it can transform from a 2-seater pickup to a 5-seater SUV. SK On's innovative approach and partnership have allowed us to meet our target of delivering a radically affordable vehicle.' "SK On in battery deal with US EV start-up Slater Auto" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
29-04-2025
- Automotive
- Yahoo
SK On in battery deal with US EV start-up Slater Auto
South Korean battery manufacturer SK On Company Ltd announced this week that it has signed a supply agreement with US-based electric vehicle (EV) startup Slate Auto, strengthening the company's position as a leading battery supplier to the North American automotive industry. SK On signed an initial agreement to supply around 20 gigawatt-hours (GWh) of US-made nickel-cobalt-manganese (NCM) batteries to Slate between 2026 and 2031, with an option to increase volumes if required. The batteries will be used to power the automaker's recently unveiled electric pickup truck. SK On, a subsidiary of South Korea's chemicals conglomerate SK Group, has invested heavily to establish a strong early presence in the North American EV supply chain. The company currently operates two battery plants in the US and is building four additional plants in partnership with automakers in the region, including with Ford Motor Company under their Blueoval SK joint venture. SK On's CEO, Lee Seok-hee, said in a statement: 'The partnership with Slate demonstrates how our US manufacturing capabilities are enabling more effective and flexible support for innovative customers. North America is a key market for us, and we are committed to delivering reliable, high-quality batteries that support our partners in making EVs more accessible, while reducing emissions and advancing sustainable mobility.' SK On said the partnership with Slate marks the company's 'strategic move into more affordable EV market segments,' having previously focused more on supplying batteries for premium EV models. Slate's CEO, Chris Barman, pointed out that his company's 'truck platform is so customizable that it can transform from a 2-seater pickup to a 5-seater SUV. SK On's innovative approach and partnership have allowed us to meet our target of delivering a radically affordable vehicle.' "SK On in battery deal with US EV start-up Slater Auto" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
