SK On Addresses Risks in the EV Battery Supply Chain
The CCO of SK On, an electric vehicle battery manufacturer, has said that Europe is putting itself at risk by becoming overdependent on electric-car batteries that have been made in China.
“Everybody I talk to in European governments is talking about ‘de-risking,’” said CCO Min-suk Sung. “Depending on the country, there is a different perspective and a different approach. The one thing they are aligned on is that you can’t just leave the situation as it is.”
Europe is seeing continuous EV infrastructure development, as the continent is determined to electrify its cars, buses, bikes and other forms of transport to decrease air pollution in urban areas and decrease carbon emissions - but it needs the battery power to do this.
UBS analysts have estimated that the market share for Chinese battery companies in the EU will increase from 30% to 50% between 2023 and 2027. Meanwhile South Korean companies’ share will fall from 60% to 40%.
Due to escalating geopolitical tensions, Sung highlighted the risks of relying on one country for the supply of EV batteries.
Innovating sustainable batteries and strengthening partnerships across the EV sector
SK On is headquartered in Seoul, South Korea, and was founded in 2021. The manufacturer builds safe and economical batteries, designed to match the rapid growth of the EV market and technology trends. SK On also offers sustainable battery lifecycle solutions, such as battery rental, charging, recycling and reuse.
SK On has worldwide battery plants operating and under construction across the US, Europe and other countries across Asia. It is also involved in various global partnerships.
SK On recently strengthened its partnership with US renewable energy semiconductor manufacturer Solid Power, with three fresh new agreements:
- A research and development licence
- A line installation arrangement
- An electrolyte supply agreement.
“This expanded arrangement with SK On provides the framework for closer collaboration with one of the industry’s leading battery manufacturers and increases our presence in one of the world’s most strategically important battery markets,” said John Van Scoter, President and Chief Executive Officer of Solid Power. “This is another meaningful vote of confidence for our solid-state battery technology. This deepened relationship strengthens our competitive position as we progress towards commercialisation.”
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