Sales Expected to Surpass KRW7tn in 2022
SK On, a battery cell maker affiliated with SK Group, is expected to more than double its sales this year compared to 2021. In the United States, its supply of electric vehicle (EV) batteries is rapidly expanding thanks to the partnerships with Ford and Volkswagen.
SK On’s sales are expected to surpass 7 trillion won in 2022. Compared to 3.034 trillion won in 2021, its sales are expected to more than double. Since 2017, its sales have more than doubled every year.
In particular, SK On’s battery business is enjoying a smooth ride in the second half of this year. By supplying EV batteries to Ford and Volkswagen from its Georgia plant in the United States, it is expanding its U.S. business on a full scale. Ford has received a whopping 200,000 pre-orders for its electric truck F150 Lightning, which is equipped with SK On’s high-nickel batteries.
Germany’s Volkswagen, which aims to take the top spot in the global EV market, has strengthened cooperation with SK On to mass-produce EVs in the United States. Previously, SK On supplied batteries to Volkswagen from its Hungarian plant, but their partnership has expanded into North America as well. According to foreign media outlets, Volkswagen started production of the EV model ID4 at its plant in Tennessee of the United States at the end of July.
SK On's annual production capacity will increase to 21.5GWh when Georgia Plant 2 goes live next year. In addition, through Blue Oval SK, a joint venture with Ford, three battery factories with a total capacity of 129 GWh will be built in Tennessee and Kentucky and go into operation sequentially starting from 2025.
SK On is also accelerating its entry into the battery material field. The company has decided to build a cathode material production facility in North America together with Ford and EcoPro BM. Ground will be broken for the plant in the second half of next year.