SK On, SK Innovation team up with Standard Energy to boost ESS safety

SK On CEO Lee Seok-hee (left) discusses vanadium-ion battery technology with employees. (SK On)

SK On and its parent company SK Innovation said Tuesday they are expanding their energy storage business by partnering with local vanadium-ion battery specialist Standard Energy, a move that will broaden their portfolio beyond lithium-based batteries to tap growing demand for safer, fire-resistant power storage solutions.

The three companies signed a memorandum of understanding on Tuesday at Standard Energy’s headquarters in Daejeon to jointly develop high-safety, high-output vanadium-ion batteries for energy storage systems.

Through this partnership, SK expects to further strengthen battery safety by expanding their ESS portfolio beyond lithium iron phosphate batteries, to include vanadium-ion batteries, which are known for their superior fire safety.

ESS are widely used at data centers and industrial facilities, where repeated high-power operation and safety are critical.

Unlike conventional lithium-ion batteries, vanadium-ion batteries use a water-based electrolyte that eliminates fire or explosion hazards and provides strong performance for short-duration applications, essential for data centers.

Under the agreement, SK On said it will use its mass-production expertise to expand cooperation with Standard Energy throughout the battery supply chain, from securing raw materials to cells and battery management systems. It will also develop specialized technologies like large-area cell design.

SK Innovation will develop electrolyte additive technologies to enhance material performance, while exploring cost reduction by using vanadium recovered from its oil refining processes.

“Through this cooperation, we will jointly develop vanadium-ion batteries for ESS with superior fire safety, further strengthening our product portfolio,” said SK On CEO Lee Seok-hee. “Based on global-level technological competitiveness, we will deliver new value to customers.”

“By accelerating the commercialization of vanadium-ion batteries, which have complementary characteristics to lithium-ion batteries, together with SK On and SK Innovation, we aim to set a new standard for ESS that can be used with confidence in environments where both safety and performance are critical, such as data centers and indoor and urban areas,” said Kim Bu-gi, CEO of Standard Energy.