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SK On marks 2nd anniversary with twofold revenue, capacity growth

SK On, South Korea’s leading global EV battery manufacturer, reported Wednesday an approximate twofold rise in quarterly revenue and global battery production capacity over the last two years, as the company marks its second anniversary this month.

Having spun off from the energy company SK Innovation to focus on the battery business in October 2021, SK On has more than doubled its quarterly revenue from 1.665 trillion won ($1.22 billion) in the last quarter of 2021 to 3.696 trillion won ($2.72 billion) in the second quarter of 2023.

This revenue growth, reflecting a compound quarterly growth rate of 23 percent, enabled SK On to amass sales surpassing 7 trillion won in the first half of 2023, nearing its full-year revenue of 7.617 trillion won in 2022 ahead of schedule.

Supporting this revenue surge was SK On's enhanced global battery production capacity. By the end of the last month, the company had more than doubled its capacity from an initial 40 gigawatt-hours at launch to 89 gigawatt-hours, with the number of production facilities increasing from five to eight.

This expansion has translated into a significant expansion in the company's workforce, growing 2.4 times from 1,445 at launch to 3,411 employees as of last month.

SK On has also raised 4.8 trillion won in pre-IPO funding between December 2022 and June 2023, surpassing its initial target of 4 trillion won by over 20 percent. The funding has been earmarked for enhancing its global battery supply chain and bolstering its financial resilience.

On the technological front, the company has been recognized for its pioneering NMC9 battery, which refers to a nickel-manganese-cobalt battery with more than 90 percent nickel content. This advanced battery, which is challenging to manufacture due to overheating risks, is lauded for its high nickel content that enhances energy density. It has been incorporated into the F-150 Lightning, the electric variant of Ford's iconic F-150 pickup.

"We'll build on our two-year momentum, focusing on technological innovation, portfolio diversification, and customer engagement to gear up for the decade ahead," said an SK On spokesperson.

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