SK On to spend $352 million to mass produce solid-state batteries by 2028

South Korean battery maker SK On Co. said on Monday it will spend 470 billion won ($352 million) to begin mass production in 2028 of solid-state batteries, dubbed a game changer, because they last longer and charge faster than lithium-ion batteries.

SK On, a unit of SK Innovation Co., said it will build a new pilot battery production line and a quality verification center at Daejeon Sejong Research Institute.

The company said it will strengthen its research and development efforts to unveil a prototype of an all-solid-state battery (ASSB) next year with an aim to commercialize it by 2028.

SK On will make the investment largely for projects at the institute over the next two years.

Through the investment, SK On plans to build a new pilot production line of prismatic and lithium iron phosphate (LFP) batteries and charge and discharge research equipment at the institute by the end of 2024.

An ASSB pilot line will be built at the institute by the first half of 2024, it said.

If all goes to plan, SK On said it will be able to unveil a prototype solid-state battery in the second half of next year and start mass production in 2028.

LFP batteries have been mainly produced by Chinese companies such as Contemporary Amperex Technology Co. (CATL), the world’s top battery maker, and BYD while Korean battery makers have been concentrating on more-expensive nickel-cobalt-manganese (NCM) cells.

GROWING DEMAND FOR LFP BATTERIES

However, demand for LFP cells is growing amid rising battery raw material prices and electric-car makers’ penchant for low-end models. LFP batteries are also more stable, making them less vulnerable to fire, although they are lower in energy density.

At InterBattery 2023, Korea’s largest battery show, in March, SK On showcased a prototype of advanced LFP batteries, which improved the driving range.

The company also unveiled a prototype prismatic battery and a solid-state battery at the battery show.

Battery makers and automakers are striving to develop ASSBs as such batteries feature longer mileage and a shorter charging time than current EV batteries due to their higher energy density.

LG Energy Solution Ltd., the world’s second-largest battery maker, said in 2021 it had developed a next-generation solid-state battery technology that is safer and more durable than existing ones.

SK On has been cooperating with Solid Power Co., a US battery maker, to advance its solid-state battery technology.

In the US, SK has also joined forces with Ford Motor Co. to build a multi-billion-dollar battery joint venture, BlueOval SK, to support the US auto giant’s rollout of its electric cars, including the Ford F-150 Lightning pickup.

In addition to the battery quality verification center to be built at Daejeon Sejong Research Institute, SK also plans to build such centers in the US and Europe in the near future.

“With the expansion of our new facilities at the Daejeon Institute, we aim to take our advanced battery technology to the next level,” said SK On President Jee Dong-seob.

Write to Sungsu Bae at baebae@hankyung.com

In-Soo Nam edited this article.