SK On plans to go public by the end of 2026

SK On will sell convertible preferred shares to investors at a price of 55000 won per share. At present, it has been confirmed that 695.3 billion won can be raised for investment, with a maximum of 1.32 trillion won. SK On will be listed before the end of 2026, or within 4 years after the transaction is completed.

SK On achieved a revenue of 2.19 trillion won in 2022 Q3

SK On is a battery subsidiary of South Korean company SK Innovation in October 2021. It is one of the top 5 stacking battery companies in the world. Its customers include Ford, Hyundai, etc. The company has production bases in the United States, China, Hungary, etc.

In terms of performance, SK On achieved a revenue of 2.19 trillion won in the third quarter of this year, with a year-on-year growth of 168.6%, thanks to the improvement of the battery yield of its new factory.

However, compared with the other two Korean battery manufacturers, SK On still has a certain gap: LG’s revenue in the third quarter was close to 7.65 trillion won, up 89.9% year on year; Samsung SDI’s revenue in the third quarter was 5.37 trillion won and its operating profit was 565.9 billion won.

The measures of SK On in the battery field since the second half of this year

Since the second half of this year, SK On has taken many measures in the battery field: On July 22, 2022, SK On issued a statement that BlueOval SK, a new joint venture company with Ford, was officially established on July 13.

On July 28, SK On announced that the company would raise $2 billion in loans to accelerate the establishment of battery plants in Europe. These financing will be used for SK On to build a third European battery factory in Ivancsa, Hungary. The plant is expected to cost 3.31 trillion won.

In August, it was reported that SK On had raised about 2 trillion won from private equity companies to expand the capacity of its global battery business. The company’s current valuation has risen to about 20 trillion won.

On November 24, according to media reports, SK On’s new EV battery factory in Hungary has started installing equipment, which is supplied by about 20 manufacturers.

The first factory of SK On Ivancsa, Hungary, which is undergoing equipment installation, has 12 production lines in total, and the planned annual capacity is 30GWh, which is enough to assemble about 4.3 million electric vehicles. Ford and Volkswagen are expected to be the main customers of their factory.

On November 25, SK On signed a memorandum of understanding with South Korea’s ECOPRO and GEM to build an HPAL factory in Morowali, Sulawesi Island, Indonesia, to produce MHP, with an annual output of 30000 gold tons of nickel, and ensure the supply to the precursor joint venture above at a transparent and competitive price.

There are also media reports that SK On and Hyundai plan to invest about 2.5 trillion won to establish a new joint venture battery factory in the United States. The plant is scheduled to start in the first quarter of 2026, with an initial annual capacity of about 20 GWh, which is enough to power about 300000 electric vehicles.

Korean battery companies are accelerating their entry into the US market

The data shows that in September 2022, the total battery load of electric vehicles in the world reached 54.7 GWh, with a year-on-year growth of 61.2%. The top 10 power battery companies in the world include 6 Chinese companies, 3 Korean companies and 1 Japanese company.

Among the three Korean battery companies, the installed capacity of LG power battery in September was significantly higher than 5.0GWh in August. The installed capacity of power battery was 8.8GWh, with a market share of 16.0% and a year-on-year growth of 39.2%, ranking second. SK On ranked No. 5 with 2.8GWh of installed power batteries, a 5.4% market share. The installed power batteries increased by 52.7% year on year.

Samsung SDI ranked No. 6. The installed capacity of power battery was 2.4GWh, with a year-on-year growth of 95.1% and a market share of 3.6%. The growth momentum of the three Korean battery companies is mainly driven by the sales of electric vehicle models equipped with batteries of each company.

It is worth noting that Korean battery companies are accelerating their entry into the American market. LG and Hyundai are considering establishing two joint-venture battery plants in the United States. It is reported that the new factory will be built in Georgia according to the plan. The annual battery capacity of each factory is about 35GWh, which is enough to power about 1 million electric vehicles.

Recently, LG said it planned to invest more than 3 billion dollars to build a battery cathode material factory in Tennessee, USA. The plant aims to achieve the capacity of 120000 tons of cathode materials annually by 2027, which is enough to power about 1.2 million pure electric vehicles. The plant will be built in the first quarter of next year, and mass production will start in the second half of 2025.

Samsung SDI is promoting GM and Volvo to set up an electric vehicle power battery factory in the United States. The total investment of the project is expected to be $8 billion, of which Samsung SDI will contribute $4 billion, and GM and Volvo will contribute another $4 billion.

It is reported that this battery factory is planned to have an annual capacity of 50GWh, which is expected to be completed and put into operation as soon as 2025, and can provide power battery for 670000 electric vehicles with a 500 km endurance every year.

Korean companies will account for nearly 70% of the North American EV battery market

It is predicted that under the influence of the US Inflation Reduction Act, Korean companies will account for nearly 70% of the North American electric vehicle battery market.

The Inflation Reduction Act stipulates that since 2023, more than 50% of the battery components and materials carried by new energy vehicles must be manufactured or assembled in North America to obtain a tax subsidy of 3750 dollars.

In addition, since 2023, 40% of the key battery minerals of electric vehicles will need to be mined or recycled in North America or 20 countries that have signed trade agreements with the United States to qualify for a tax preference of $3750 per vehicle.

It is predicted that by 2025, the production capacity of Korean companies in North America will reach 355GWh, accounting for 67.4% of the total battery production capacity in North America.