[Concall] "SK On expects operating rate recovery in the second half of this year"

SK Innovation's battery subsidiary SK On expects its operating rate to recover starting from the second half of this year.

At the Q2 earnings presentation on the 1st, SK Innovation stated, "Due to a slowdown in the global electric vehicle market and a decrease in OEM (original equipment manufacturer) demand, the overall operating rates in Q1 and Q2 declined," but added, "a gradual recovery is expected from the second half of this year."

They continued, "Currently, we are flexibly responding to production plans by implementing efficient line operation plans tailored to the situation of each plant by region," and "during this period, we are also focusing on improving manufacturing processes, eliminating safety risks, and enhancing quality, thereby increasing structural competitiveness."

They further stated, "Since the second half of 2023, the yield rates of all plants have been on an upward trend," and "we believe we have entered the stage of stabilizing yield rates across all plants. We expect to achieve high yield levels by 2025."

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