SK On seals $2.8 bn battery deal with Bezos-backed US EV start-up Slate

SK On Co., the battery subsidiary of South Korea’s energy conglomerate SK Group, has signed a supply agreement worth an estimated 4 trillion won ($2.8 billion) with US electric vehicle start-up Slate Auto, which has drawn attention after it was known to have secured Amazon founder Jeff Bezos among its backers.

The agreement marks another significant milestone for SK On, coming just weeks after the battery maker signed a 15 trillion won deal with Japanese carmaker Nissan Motor Co.

The latest contract with Slate reinforces SK On’s aggressive push into the US market, positioning itself as a key supplier not only to legacy automakers but also to next-generation EV players.

Under the deal announced on Friday, SK On will supply 20 gigawatt-hours (GWh) of battery capacity to Slate between 2026 and 2031 – enough to power around 300,000 midsize electric vehicles.

Though financial terms were undisclosed, industry officials estimate the deal’s value at close to 4 trillion won, citing recent battery prices.

The two companies have also agreed to explore scaling up supply volumes should Slate’s vehicle production increase.

SLATE TRUCK BATTERIES WILL BE MADE AT SK’S US PLANT

Founded in 2022 in Michigan, Slate plans to launch a compact two-door electric pickup truck next year priced under $30,000 – a segment largely overlooked by incumbent EV makers.

To keep costs low, Slate has streamlined the vehicle’s manufacturing process and design, offering just a single exterior color. Buyers can then personalize their vehicle using a range of modular DIY kits, including options to upgrade the trim, install a roof rack or convert the pickup into a five-seater SUV.

The upcoming electric pickup will be equipped with SK On’s high-nickel NCM (nickel-cobalt-manganese) battery cells, known for their superior energy density and safety – attributes considered crucial in the long-range US EV market.

The batteries to be supplied to Slate will be manufactured at SK On’s US production facilities.

SK On, an affiliate of Korea’s top energy company SK Innovation Co., began investing in US production capacity in 2019 and started mass production in 2022.

It now operates one fully operational plant in Georgia and is building four additional facilities in Georgia, Kentucky and Tennessee in partnership with automakers through joint ventures.

By the end of 2026, half of SK On’s global production capacity is expected to be based in the US, with US output likely exceeding 180 GWh annually once all plants reach full capacity.

STRATEGIC SHIFT

The deal with Slate marks a strategic shift for SK On as sales of its batteries expand beyond premium electric vehicles to more affordable models – a move that could help accelerate EV adoption among mass-market consumers.

At a product unveiling event in Long Beach, California, on Thursday, Slate Chief Executive Chris Barman described the start-up as “more than a car company,” calling it “a flexible truck platform built for customization.”

SK On CEO Lee Seok-hee, who attended the launch, said the partnership reaffirmed “trust in SK’s technology and manufacturing capabilities in the US.”

“The US is a core strategic market for us,” Lee said. “We’re committed to delivering high-quality, locally made batteries that meet the needs of a rapidly evolving EV landscape.”

NISSAN: SK ON’S FIRST JAPANESE CLIENT

Last month, SK On signed a deal to supply 99.4 GWh of high-performance, high-nickel batteries to Nissan from 2028 to 2033.

The agreement marks SK On’s first partnership with a Japanese automaker.

The batteries, enough to power 1 million midsize EVs, are expected to be manufactured in SK On’s new plant in Kentucky, which is set to embark on mass production in the first half of this year.

SK batteries will power Nissan’s next-generation EVs to be produced at its Canton, Mississippi assembly plant.

Nissan last year announced plans to launch 30 new models over the next three years, of which 16 are electrified cars. The automaker plans to produce four EV models from its Mississippi plant starting in 2028.

Write to Woo-Sub Kim at duter@hankyung.com

In-Soo Nam edited this article.