Latest news with #SKEnmove
Yahoo
04-08-2025
- Automotive
- Yahoo
South Korean battery-maker SK On to merge with SK Enmove
SK Innovation Company, the energy unit of South Korean conglomerate SK Group, announced that it has approved the merger of its EV battery manufacturing subsidiary SK On Company with its EV lubricants subsidiary SK Enmove Company. The boards of the three companies recently signed an agreement for SK On to 'absorb' the operations of SK Enmove, with the new combined company to be officially launched on 1st November – along with a major 'capital expansion initiative.' SK On is one of South Korea's top 3 EV battery manufacturers, but has been struggling with slower-than-expected growth in global battery electric vehicle (BEV) sales. SK Enmove produces lubricants, immersion cooling solutions and air conditioning refrigerants for EVs and other applications. The merger is expected to enhance the competitiveness and accelerate growth in SK Innovation's electrification business, which is seen as a key driver of future growth. It is expected to generate additional revenues through the development of synergies between the two companies' customers and businesses, and facilitate entry into new markets. SK Innovation confirmed the boards of SK Innovation and SK On have 'approved a resolution for a large-scale capital increase through third-party allotment, marking a proactive step in capital financing.' The company said it aims to raise a total of KRW 8 trillion (US$ 5.7 billion) in new capital this year. SK Innovation said the merger and financial restructuring are part of its strategy 'to become a leading total energy company with top-tier competitiveness in the future era of electrification,' as it targets KRW 20 trillion in EBITDA by 2030. Lee Seok-hee, CEO of SK On, said in a statement: 'With the expected synergies from the merger, including the integration of both companies' technological and business capabilities, we anticipate showcasing a higher level of competitiveness in the global market.' "South Korean battery-maker SK On to merge with SK Enmove" 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
01-08-2025
- Automotive
- Yahoo
Korean battery maker SK On to merge with SK Enmove
SK Innovation Company, the energy unit of South Korean conglomerate SK Group, has announced that it has approved the merger of its EV battery manufacturing subsidiary SK On Company with its EV lubricants subsidiary SK Enmove Company. The boards of the three companies recently signed an agreement for SK On to 'absorb' the operations of SK Enmove, with the new combined company to be officially launched on 1st November – along with a major 'capital expansion initiative.' SK On is one of South Korea's top three EV battery manufacturers, but has been struggling with slower-than-expected growth in global battery electric vehicle (BEV) sales. SK Enmove produces lubricants, immersion cooling solutions and air conditioning refrigerants for EVs and other applications. The merger is expected to enhance the competitiveness and accelerate growth in SK Innovation's electrification business, which is seen as a key driver of future growth. It is expected to generate additional revenues through the development of synergies between the two companies' customers and businesses, and facilitate entry into new markets. SK Innovation confirmed the boards of SK Innovation and SK On have 'approved a resolution for a large-scale capital increase through third-party allotment, marking a proactive step in capital financing.' The company said it aims to raise a total of KRW 8 trillion (US$ 5.7 billion) in new capital this year. SK Innovation said the merger and financial restructuring are part of its strategy 'to become a leading total energy company with top-tier competitiveness in the future era of electrification,' as it targets KRW 20 trillion in EBITDA by 2030. Lee Seok-hee, CEO of SK On, said in a statement: 'With the expected synergies from the merger, including the integration of both companies' technological and business capabilities, we anticipate showcasing a higher level of competitiveness in the global market.' "Korean battery maker SK On to merge with SK Enmove" 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.
Korea Herald
30-07-2025
- 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
05-03-2025
- Automotive
- Korea Herald
SK On completes prismatic, 46-pi battery development
Battery maker in talks with auto brands to secure orders for newest products SK On has completed the development of prismatic and 46-pi cylindrical battery cells, the Korean battery maker's head of research and development division said Wednesday. 'We are trying our best to speed up the process of mass production for (the prismatic batteries) right now,' Park Ki-soo, head of SK On's R&D division, told reporters at the 2025 InterBattery exhibition at Coex in Seoul. 'We are in talks with clients to secure orders but mass production must be carried out in steps with their automotive market situation, so we are going to align with their timeline.' Park added that SK On has completed developing 46-pi cylindrical battery cells despite being the last among Korean battery makers to join the race for the development and mass production of the cells. 'We are making various form factors with different heights,' he said. 'The development (of 46-pi cylindrical battery cells) is complete, but we are in the process of developing distinguished technology regarding production to bolster mass production capabilities.' SK On's R&D chief also shared that the company expects development of its 'immersion cooling technology' to be complete in approximately two years. The thermal management solution cools heat-generating components by directly immersing them in thermal fluids. SK On's immersion cooling technology is being co-developed with SK Enmove, a sister company under SK Innovation, and features a structure tailored to support fast charging with an ability to curb thermal runways. '(As for the immersion cooling technology's application,) it's being developed for both (energy storage systems) and electric vehicles,' he said. Asked about a potential hike in the price of batteries equipped with the technology, Park mentioned that automakers can remove existing defensive materials loaded on the EV batteries to prevent thermal runways, as SK On's immersion cooling technology can replace them. 'As (automakers) remove such materials, we believe that the overall price (of the battery) will remain similar,' he said.
Korea Herald
03-03-2025
- Automotive
- Korea Herald
SK On, SK Enmove to showcase fireproofing solution for EV batteries
SK On said Sunday that it will showcase an advanced thermal management solution for electric vehicle batteries with SK Enmove, its sister company under SK Innovation, at the upcoming battery exhibition in Seoul. The company's battery pack, currently under development with the lubricant supplier, features 'immersion cooling technology' that enhances cooling efficiency through an optimized fluid flow design, maximizing the contact area between thermal fluids and cells. Immersion cooling is a thermal management solution that effectively dissipates heat by circulating insulating thermal fluids within the battery pack. By directly interacting with the battery cells' surface, this method prevents temperature increases more efficiently than indirect cooling methods like air or liquid cooling and significantly reduces the risk of fires or explosions. SK On plans to leverage this technology in its wireless battery management system, or BMS. Unlike conventional BMS setups that require wiring harnesses and connectors, the company attached a wireless chip to the cell tabs, transmitting cell data via antennae embedded within the battery module. This innovation addresses the issue of wires in the traditional BMS that can disrupt the flow of thermal fluids and affect cooling performance. 'The wireless BMS, combined with immersion cooling technology, boasts a simple structure and high physical stability, reducing the risk of fluid leakage while improving its waterproof features,' stated SK On. In addition, the system can boost energy density with the extra space taken up by physical wires. The wireless device will likely enhance reliability as it eliminates defects in cables and connectors caused by vehicle vibrations. The wireless battery control system is also expected to accelerate the adoption of the 'Battery Passport.' Proposed by the Global Battery Alliance ― an international organization with over 170 governments and companies ― in 2020, the passport is a digital record providing comprehensive information about a battery's life cycle, including manufacturing details, history and recycling data. 'We anticipate a rising demand for wireless BMS and immersion cooling, driven by the increasing importance of safety as EV adoption accelerates,' said Park Ki-soo, head of SK On's R&D division. 'SK On will spearhead the battery safety solution industry and continue contributing to mobility electrification through technological innovation.' The InterBattery expo this year, held in Gangnam, Seoul from Wednesday to Friday, will feature major South Korean battery-makers LG Energy Solution, Samsung SDI and SK On, along with China's BYD and EVE, which will be attending for the first time.
