SK on celebrates two-year anniversary with sales up by 3.5 times

[Courtesy of SK on]

South Korean battery maker SK on Co., which celebrated its 2nd anniversary on Sunday, has seen remarkable growth in revenue and production capacity, climbing to No. 4 in global EV battery sales in the first half of the year.

When SK on separated from its parent in 2021, its fourth-quarter sales stood at 1.07 trillion won ($786 million) and annual production capacity was 40 gigawatt-hours (GWh), sufficient to equip 400,000 to 500,000 units of high-performance EVs.

As part of efforts to carry out aggressive investments at home and abroad, including the U.S. and Europe, SK on managed to secure capital through pre-initial public offering, raising about 4.8 trillion won from four rounds between December 2022 and June, this year.

The proceeds enabled the battery maker to more than double its annual production capacity to 89 GWh and pursue additional battery plant constructions in the U.S. and Hungary.

The efforts resulted in 3.7 trillion won in sales for the second quarter, up nearly 3.5 times in just two years.

The company’s domestic employment has also significantly increased to 3,411 workers from 1,445 at the time of its inception in 2021.

According to data from the market research firm SNE Research, SK on posted $54 billion EV battery sales in the first half of this year, accounting for 7.7 percent of the entire market, ranking No. 4 globally.

SK on has also been dedicated to technology development. Its NCM9 battery, which uses cathode materials with a nickel content of over 90 percent, received innovation awards in various automotive technology sectors, including in-car entertainment and safety, embedded technology, vehicle technology, and advanced mobility, during the Consumer Electronics Show 2022 and 2023.

SK on aims to reach a production capacity of 220 GWh by 2025, with the successful completion of ongoing investments. The company aims to achieve its earnings before interest, taxes, depreciation, and amortization (EBITDA) goal by the end of this year and, preferably, swing to profit next year.

The global EV demand slowdown, however, and the presence of the former U.S. President Donald Trump, who is gaining support for the upcoming U.S. presidential election, are potential variables that could impact the battery maker’s growth.

According to the local financial data tracker FnGuide, SK on is projected to raise 3.4 trillion won in sales and post 185.9 billion won in operating losses in the third quarter, slightly down from 3.7 trillion won in second-quarter sales and 131.5 billion won in operation losses.