SK On Partners With Sakuu To Advance 3D-Printed Battery Technology Amid Financial Struggles

SK On is pushing forward with technological advancements despite facing financial challenges in an evolving electric vehicle (EV) market with a recently announced joint development agreement with Sakuu, a innovative firm in 3D-printed battery technology.

While SK On is simultaneously grappling with an internal “emergency” due to disappointing EV sales, the partnership with Sakuu focuses to develop and commercialize the Kavian platform, a 3D printing technology for battery electrodes. In addition, this will bring the production of fully functional batteries in custom shapes and sizes, potentially cutting production costs by nearly half while improving battery longevity and recyclability.

Dr. Rhee Jang-weon, Chief Technology Officer of SK On, expressed confidence about the partnership stating, “We look forward to working closely with Sakuu to accelerate innovations in the manufacturing processes for EV battery electrodes.”

Moreover, the joint partnership focuses on industrializing Sakuu’s dry process Kavian platform, which eliminates the use of solvents in battery production while promising more cost-effective and environmentally friendly production methods.

SK On’s Emergency Declaration

Yet, this forward-looking partnership comes at a challenging time for SK On. The company has declared itself in crisis, with CEO Lee Seok-hee announcing a series of cost-cutting measures and describing the situation as “emergency management.” To illustrate, SK On recorded losses since 2021, with cumulative operating losses resulting to around 2.3 trillion won ($1.7 billion).

The financial strain stems from aggressive investments in the U.S. and Europe, betting on a projected rise in EV demand that has not materialized as quickly as anticipated. As a result, SK On had to extend lay-offs at its plant in Georgia and delay the launch of a second plant in Kentucky, a joint venture with Ford.

Despite these financial and market challenges, SK On continues to expand its presence. One of them includes a recently signed memorandum of understanding (MoU) with ExxonMobil for a major lithium supply agreement.

With the EV market evolving, SK On’s partnership with Sakuu and its ongoing investments in battery technology and production capacity position the company to potentially weather the current storm and capitalize on future growth in the industry. As challenges still remain ahead, the company’s strategy to navigate through these changing market dynamics will be critical to determining its long-term success.

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