SKIET to Supply Separator Fabric for 300,000 Electric Vehicles in North America

Demand for Non-Chinese Battery Materials Increases
Due to Trump Administration's China Policy

SK Innovation Energy Technology (SKIET) is accelerating the diversification of its customer base centered in North America by supplying battery separator substrates for electric vehicle projects to global clients in the region.

An SK Innovation employee is inspecting a separator. Photo by SKIET

SKIET announced on the 10th that it began supplying separator substrates for new projects in the North American region starting this month. The company plans to supply an amount of separator substrates equivalent to up to 300,000 electric vehicles by next year. Specific details such as contract amounts with customers were not disclosed due to contractual agreements between the parties.

SKIET expects a significant increase in separator supply volumes after next year as the electric vehicle chasm (a temporary demand stagnation) eases.

Due to recent U.S. policies, global customers are seeking to procure non-Chinese materials. SKIET secured a competitive edge in pricing through tariff effects on Chinese-made separators, achieving this large-scale North American order.

According to energy market research firm SNE Research, the market share of Chinese battery separators was 88.8% in the fourth quarter of last year. If U.S.-China trade uncertainties continue, the market share of non-Chinese countries is expected to gradually increase. Battery separators are produced by only a few companies in South Korea and Japan outside of China, which is expected to boost demand for Korean-made separators.

Amid these international circumstances, SKIET’s global customer diversification strategy is also yielding consecutive successes. In February, SKIET signed a mid- to long-term supply contract worth 291.4 billion KRW with a global customer for prismatic lithium iron phosphate (LFP) battery separators.

An SKIET official stated, "The customer diversification strategy, mainly focused on the North American region, is producing continuous results. This separator supply not only increases sales volume but also raises factory operating rates, leading to expectations of substantial profit improvement."

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