The logo of SK On is pictured at its EV battery factory in Seosan, South Korea, October 19, 2023. REUTERS/Kim Hong-Ji/File Photo
SEOUL: South Korean electric vehicle (EV) battery maker SK On is in talks with automakers to supply prismatic batteries, expanding from its existing pouch-type batteries, a senior executive says, as it scrambles to turn around amid slowing global EV demand.
SK On, a unit of energy group SK Innovation, which supplies EV batteries to Ford Motor, Hyundai Motor, Volkswagen among others, is speaking to multiple automakers that are looking to line up prismatic battery supply deals, SK On chief spokesperson Ko Chang-Kook said.
“We are having talks with automakers who will take our prismatic batteries, we will now have the opportunity to diversify our product portfolios sooner than later,” Ko told Reuters.
Ko did not disclose the names of automakers but said the company has already completed the prismatic battery technology and is prepared to start producing prismatic batteries once discussions are finalised.
There are three types of lithium-ion batteries currently used in EVs – prismatic, cylindrical and pouch-type, all of which are fundamentally the same in functionality, but each has pros and cons.
Prismatic and cylindrical batteries are cased in hard materials. Pouch-types use sealed flexible foils and are protected by thin metal bags. SK On currently produces only pouch-type batteries for EVs.
While the firm secured prismatic battery technology, it is also looking to develop cylindrical-type batteries, widely known for the type used by Tesla.
When asked if SK On, which has never made a profit since it was split off from SK Innovation in late 2021, plans to cut its capital expenditure for the year, Ko said SK On is not considering that for now, adding it will not cut research and development spending. — Reuters
