Previously dedicated to producing pouch-type batteries, SK on has now embarked on the development of the “4680 battery,” a product Tesla has successfully made a game-changer in the electric vehicle (EV) market. This move to broaden its portfolio by adding cylindrical batteries follows its success with prismatic batteries. If SK on succeeds in mass-producing cylindrical batteries, it would be the first Korean company to manufacture all three major battery form factors.
According to industry sources on Jan. 7, SK on has recently formalized the development of the cylindrical 4680-standard battery, initiating research and development (R&D) and laying out a detailed road map for mass production. The 4680 battery refers to a cylindrical battery measuring 46 mm in diameter and 80 mm in length.
Until now, SK on has been exclusively producing high-performance, high-nickel content pouch-type batteries. Although they have successfully produced prismatic battery prototypes in the latter half of last year and provided samples to clients, a final supply agreement has yet to be confirmed. This situation has led to criticisms of SK on’s weaker product portfolio compared to rivals like LG Energy Solution and Samsung SDI, who also manufacture cylindrical batteries alongside their pouch and prismatic offerings.
There have been concerns that SK on might not meet the diversifying battery form factor demands of automakers expanding their EV lineups. An industry insider stated, “There was a strong sense of crisis within SK on that relying on a single form factor was not enough. Recognizing the emerging trend towards cylindrical batteries, the company has decided to venture into product development.”
Up until a year or two ago, cylindrical batteries were considered “non-mainstream” in the EV market. Their round shape, which leads to increased unusable space, and lower manufacturing costs were seen as unsuitable for EVs requiring high capacity and high output.
Tesla has been a game-changer in this regard. In September 2020, Tesla unveiled specifications for the 4680 battery, significantly larger and more powerful than its previous 2170 battery. This new product boasts five times the energy density and six times the output of its predecessor, potentially increasing EV driving range by up to 20%. It also offers better price competitiveness and productivity due to fewer manufacturing steps, making it a front-runner in the price-sensitive market for EV expansion.
Automakers are quickly adopting this technology. BMW has decided to equip its next-generation EVs, starting next year, with large-capacity cylindrical batteries 46 mm diameter and has selected Chinese companies CATL and EVE Energy as suppliers. General Motors, Stellantis, Volvo, and others are also expected to use these batteries in their EVs.
To meet this demand, LG Energy Solution plans to start producing 4680 batteries in South Korea from the second half of this year and aims to repurpose its new factory in Arizona in the U.S. as a production hub for the 46-series, starting next year. Samsung SDI also plans to begin mass production next year.
The industry expects SK on to be capable of mass-producing 4680 batteries by the end of 2026.
An industry expert commented, “The fight among companies will be who can quickly overcome the significant technical challenges and stabilize the production of large-capacity cylindrical batteries.”