Efficiency Abounds
SK On is predicted to turn back to the black in 2023 by raising factory yields pointed out as the cause of the company’s sluggish performance.
SK On has recently secured a yield of 80 percent at its plants either in the state of Georgia in the United States, and in Hungary. The two plants started operations last year. Until the end of 2022, efforts were made to normalize the yields by dispatching skilled personnel. The efforts paid off to some extent.
The production capacities of the two plants are 22 GWh and 10 GWh, respectively. SK On plans to use the two plants as production bases in North America and Europe in the future. SK On is planning to make a total investment of 23 trillion won (US$18 billion) by 2025. Of the investment, the actual amount invested up to the third quarter of last year was 9.2614 trillion won (US$7.1067 billion). More than 13 trillion won (US$10 billion) will be additionally invested in the two plants.
SK On aims to become an enterprise with black books next year. In a recent conference call, it was mentioned that the company will achieve a surplus based on earnings before interest, taxes, depreciation, and amortization (EBITDA) this year, and will turn an operating profit next year.
SK On has been steadily expanding its sales year after year. Its sales grew to 1.6102 trillion won (US$1.2356 billion) in 2020, 3.369 trillion won (US$2.585 billion) in 2021, and 7.6178 trillion won (US$5.8454 billion) in 2022.
Normally, battery industry insiders think that it takes two to three years to raise the yields of a line to 90 percent or higher.