According to Reuters, an executive of SK On, a South Korean electric vehicle battery maker, said that the company is in talks with automakers to supply square batteries to expand its existing soft bag battery products.
SK On is trying to turn things around amid a slowdown in global demand for electric vehicles.
SF batteries.
photo: SK On,SK On, a battery subsidiary of SK Innovation, supplies electric vehicle batteries to automakers such as Ford, Hyundai and Volkswagen.
Ko Chang-Kook, SK On’s chief spokesman, said the company was in talks with a number of carmakers looking to reach agreements to supply square batteries.
Gao Changguo revealed: “We are in negotiations with automakers that plan to use SK On square batteries.
” We will have the opportunity to diversify our product portfolio as soon as possible.
” Although Gao Changguo did not disclose the name of the carmaker in talks, the company said it had improved the square battery technology and was ready to start production after the negotiations were completed.
At present, there are three types of lithium-ion batteries used in electric vehicles-square batteries, cylindrical batteries and soft bag batteries, which have basically the same function, but each has its own advantages.
The shells of square and cylindrical batteries are made of hard materials, while soft-package batteries are sealed with flexible foil and protected by thin metal bags.
SK On currently only makes soft-pack batteries for electric vehicles.
Although SK On has mastered square battery technology, the company also plans to develop cylindrical batteries, which are known for their wide use in Tesla models.
SK On has been unprofitable since it was spun off from SK Innovation at the end of 2021.
When SK On was asked if he planned to cut capital spending this year, Gao Changguo said SK On had no such consideration at the moment, adding that it would not cut R & D spending.
Earlier this year, SK On’s parent company, SK Innovation, said that the company’s capital expenditure budget for this year was about 9 trillion won ($6.
55 billion), of which more than 80% was allocated to SK On.
SK On’s rival LG New Energy (LG Energy Solution) said in April that it planned to minimise capital expenditure this year because of slowing demand for electric vehicles.
Last month, LG New Energy suspended part of its multibillion-dollar battery plant in Arizona as the company flexibly adjusted the pace of planned investment to optimize its operations.
SK On said in April that it was still on track to achieve its goal of turning losses into profits in the second half of this year.
But in early July, the company said it would cut spending across the board, including freezing the salaries of all executives until it was profitable.
According to local media reports, SK Innovation plans to merge SK On with SK energy, a highly profitable gas energy subsidiary.
SK Innovation said in a regulatory filing that it would hold a board meeting on July 17 to discuss strategic measures, including mergers, to enhance SK On’s competitiveness, but no decision has been made yet.
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