SK Innovation’s battery unit, SK On, plans to accelerate development of advanced battery technologies, according to its head of R&D, Park Kisoo.

SK On is a South Korea-based manufacturer of batteries for electric vehicles and energy storage systems.

Park said the company is focusing on thermal management technologies, including immersion cooling for batteries used in AI data centers, energy storage, and EVs.

SK On is reportedly in discussions with Ford and Hyundai about collaborating on these technologies.

The company is also working on solid-state batteries, aiming for development by the end of 2027, and mass production from 2029.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ SK On enters crowded solid-state battery race with realistic timeline

SK On’s 2027 target for solid-state battery development aligns closely with major competitors who are pursuing similar timelines.

Samsung is targeting mass production of solid-state batteries by 2027 with prototypes achieving 800 km range and over 1,000 cycles, while Toyota aims for 2028 with 750-mile range capabilities1.

Industry analysts predict solid-state batteries will begin appearing in premium electric vehicles between 2027 and 2030, suggesting SK On’s timeline positions them competitively within the expected market window2.

The company’s focus on pouch-type cells as their initial solid-state application reflects a strategic choice to leverage existing technological strengths rather than competing across all battery formats simultaneously.

2️⃣ Government backing transforms battery manufacturing from private risk to strategic priority

SK On’s $9.63 billion US government loan with Ford represents part of a massive $198 billion in announced US battery manufacturing investments over the past decade3.

This government support fundamentally changes the risk profile for battery manufacturers, enabling projects that might otherwise struggle to secure private financing in a capital-intensive industry.

The loan facilitates SK On’s construction of multiple US facilities while the company simultaneously manages financial challenges through its parent company’s reorganization plans.