[CES 2024] SK On moves to develop Tesla-friendly cylindrical batteries

Korean battery maker SK On is developing cylindrical batteries for EVs, a battery type predominantly used by Tesla.

Hyundai Motor Group Executive Chair Euisun Chung, at the center, and SK On's Executive Vice Chairman Chey Jae-won listens to explanation from the spokesperson at SK Group's booth for CES 2024 in Las Vegas on Tuesday. [SK ON]

Korean battery maker SK On is developing cylindrical batteries for EVs, a battery type predominantly used by Tesla.

The company’s Executive Vice Chairman Chey Jae-won said on Wednesday that the battery development has made substantial progress.

“We are developing all three types of batteries — cylindrical, pouch and prismatic — to respond to different needs and specifications from clients,” Chey told the press on Wednesday as he swept the grounds of the Las Vegas Convention Center for CES 2024. “Development for prismatic-type batteries has been completed, while the development of cylindrical batteries has progressed far.”

The mass production of the cylindrical batteries will be determined depending on the requests of clients, he said.

The battery maker currently only makes pouch-type batteries, but is diversifying battery forms complying to global market demand as automakers expand their EV lineups. It succeeded in creating the prismatic cell mock-up in March last year.

Although cylindrical batteries are cheaper to produce than pouch or prismatic cells, they were deemed to be unsuitable for EV batteries that required high capacity and high output.

Tesla became the game changer in the field as it succeeded in producing the “4680” cylindrical batteries which have a higher energy density than existing batteries and reduces costs by 50 percent.

When asked whether the company could expect a turnaround for the fourth quarter earnings of 2022, Chey replied that he “isn’t sure if the company could reap the results that it wanted due to weak auto market conditions” and believes it to be “an opportunity to strengthening the foundation.”

Chey also refrained from giving the timeline for SK On’s initial public offering (IPO).

“We have many things to consider, including the financial market, so we do not have any immediate plans [to go public],” Chey said. “When the timing is right, we want to go ahead as soon as possible.”

SK On's Executive Vice Chairman Chey Jae-won listens to explanation from LG Electronics' spokesperson about LG's Alpha-able concept car at CES 2024 in Las Vegas on Wednesday. [SK ON]

The first stop that Chey made on the first day outing for CES 2024 was to the Israeli autonomous driving company Mobileye, acquired by Intel for $15.3 billion in 2017. The company has developed cutting-edge chips and software for driverless cars, including Tesla.

At the booth, Chey met with Hyundai Motor Group Executive Chair Euisun Chung. The two chiefs met again later that day when Chung visited SK Group’s booth, where Chey personally introduced SK’s latest technologies in carbon reduction to reach a net-zero society.

Chey also visited booths for Hyundai Motor, Samsung, LG, Doosan and U.S. construction equipment producer John Deere to monitor the latest mobility and sustainable technologies.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]