SK Corp. invests another 30 billion KRW in lithium metal battery developer, becoming the third largest shareholder of SolidEnergy

A thin lithium metal foil used as an anode material in lithium metal batteries developed by Solid Energy Systems.

[Asia Economy Reporter Kim Hyewon] SK Inc. announced on the 11th that it will invest an additional 40 billion KRW in SolidEnergy Systems, a next-generation electric vehicle battery developer. This is the second investment following approximately 30 billion KRW in 2018, securing SK Inc.'s position as the third largest shareholder of SolidEnergy alongside Singapore's sovereign wealth fund Temasek and founder and CEO Chi Chao Hu. SK Inc. plans to further secure core battery technologies and strengthen its strategy to target the future automotive materials market through SolidEnergy, which is developing next-generation high-performance, high-capacity lithium metal batteries.

Founded in 2012 as a startup from the MIT research lab in the United States, SolidEnergy is headquartered in Singapore and operates research centers and pilot production facilities in Boston and Shanghai, China. SolidEnergy has succeeded in developing lithium metal battery prototypes and, based on its proprietary technology, has attracted attention as the next-generation battery developer closest to commercialization, having signed a joint research agreement with General Motors (GM) in March. SolidEnergy and GM plan to build a lithium metal battery pilot production plant near Boston, USA, in 2023. The target for final commercialization is 2025.

Prototype of lithium metal battery.

Lithium metal is known to be vastly superior in capacity and performance compared to conventional lithium-ion batteries. It offers about ten times the energy capacity compared to graphite, which is used as the anode material in lithium-ion batteries, and is considered a next-generation anode material capable of delivering and accepting high current. This can significantly reduce battery volume and weight while doubling driving range.

Industry insiders expect a high possibility of SolidEnergy pursuing a U.S. stock market listing, which is anticipated to increase the value of SK Inc.'s stake upon listing. Another battery developer, QuantumScape in the U.S., was listed on the New York Stock Exchange in September last year, achieving a corporate valuation of 3.3 billion USD (approximately 3.7 trillion KRW).

Kim Yangtaek, Head of SK Inc.'s Advanced Materials Investment Center, said, "SK Inc. has focused on proactively securing core materials and technologies for electric vehicles through investments in Watson, the global No. 1 copper foil manufacturer, and Yes Power Technics, a next-generation power semiconductor company, in the rapidly growing electric vehicle market. Going forward, we will establish our position as a global advanced materials company by leading next-generation new materials in battery cathode and anode sectors."

This content was produced with the assistance of AI translation services.