Battery Startup SK On Launches

Appointment of President Jidongseop
In Charge of Electric Vehicle Battery Service and ESS

SK Innovation's newly established battery subsidiary SK On's CEO Ji Dong-seop (center, raising his hand) is inspecting the second electric vehicle battery plant under construction in Georgia, USA, on the 29th of last month (local time).

[Asia Economy Reporter Choi Dae-yeol] SK Innovation's newly established battery business corporation, SK On, officially launched on the 1st.

According to the company, at the board meetings held separately for each company that morning, the name of the newly established corporation through a physical division was finalized, and a new CEO was appointed. The newly established battery business corporation is SK On (ON), and the new CEO will be President Ji Dong-seop, who has been overseeing the battery business at SK Innovation. The new corporation name for the petroleum development division is SK Earth On (earth on), and Vice President Myung Seong, who has been leading the existing E&P business, will continue in his role. Each new company plans to hold a founding ceremony that afternoon.

SK On will engage in the production of medium and large batteries for electric vehicles, as well as electric vehicle battery service business (BaaS - Battery as a Service), and energy storage system (ESS) business. The electric vehicle battery has secured an order backlog of over 1000 GWh from global automakers and others, so there is a need to rapidly increase production capacity. Currently, the production capacity of domestic and overseas factories is about 40 GWh, and by 2025, additional factories will be built mainly in the US, China, and Europe to increase capacity to over 200 GWh. The initial public offering (IPO) will be pursued when the battery business itself becomes profitable and the company’s value is properly recognized.

SK On CI

The petroleum development business will handle carbon capture and storage (CCS) along with the existing petroleum production and exploration business. CCS is expected to create synergy based on existing business know-how by utilizing depleted oil fields and other resources. SK Innovation is reorganizing its existing fossil fuel-centered business into environmentally friendly businesses under its ‘Carbon to Green’ strategy, and this newly established company will play an important role in executing this strategy. The company expects that faster decision-making will be possible and corporate value can be enhanced.

With this division, SK Innovation is expected to focus on its role as a mid-level holding company, having spun off the businesses it directly managed. It plans to discover new businesses through eco-friendly research and development (R&D), business development, and mergers and acquisitions (M&A).

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