SK On to invest 470 billion won in cheap, solid-state batteries

SK On will invest 470 billion won ($352 million) to build a pilot plant for solid-state batteries and a facility for chapter electric batteries, a market currently dominated by China’s CATL.

Daejeon Mayor Lee Jang-woo, left, and SK On CEO Jee Dong-sub, take a photo after signing an agreement Monday. [SK ON]

SK On will invest 470 billion won ($352 million) to build a pilot plant for solid-state batteries and a facility for chapter electric batteries, a market currently dominated by China’s CATL.

The battery maker wholly owned by SK Innovation said Monday the investment will go on expanding its battery research center in Daejeon, and newly building a pilot plant for solid-state batteries and a new facility for quality control management there.

Some of the investment will be used in expanding its research facilities for prismatic and lithium iron phosphate, or LFP, batteries to pursue low-cost and safety. The new facility will start operation in the second half.

Construction is also ongoing on a pilot plant for solid-state batteries, which are touted as "dream batteries" due to their dramatically high energy density and safety. No company has yet been able to commercialize them.

The construction will likely finish by the first half of next year. SK On aims to develop a pilot solid-state battery product by the second half of 2024, with a goal of commercialization in 2028.

Global Validation Center will be newly built by the second half of next year, in which local batteries will be evaluated for their quality.

The new investment will likely create 400 more jobs, SK On said.

"The latest investment in infrastructure will boost SK On's competitiveness in technology," said SK On CEO Jee Dong-sub.

Jee signed an agreement with Daejeon Mayor Lee Jang-woo Monday at Daejeon Metropolitan City Hall on Monday.

BY SARAH CHEA [chea.sarah@joongang.co.kr]