2 weeks Ago By Jung So-yeon
SK On has successfully secured a new client in the United States, expanding its customer base to include promising startups in addition to existing global automakers. This solidifies the US market as a key growth driver for SK On. On April 25, SK On announced that it has been chosen as the battery supplier for the American electric vehicle startup 'Slate.
' Under this agreement, SK On will supply approximately 20 gigawatt-hours (GWh) of batteries over six years, from 2026 to 2031. This quantity is enough to equip around 300,000 mid-sized electric vehicles. The two companies have agreed to increase battery supply volumes if vehicle production rises in the future.
Slate, founded in Michigan in 2022, plans to launch a competitive and distinctive two-door electric pickup truck next year, with a target price of below $30,000. The strategy involves simplifying the vehicle manufacturing process and design to lower sales prices. Notably, the pickup truck will be released in a single color.
However, a DIY (Do-It-Yourself) kit will be available, allowing customers to customize the exterior and interior according to their preferences and needs. Options include adding a roof rack or converting it into a five-passenger SUV. The vehicle will be equipped with SK On’s high-nickel NCM (nickel-cobalt-manganese) batteries, known for their energy density, safety, and performance, which are increasingly in demand in the American market where single-charge driving range is a priority.
This aligns with Slate's business strategy of creating "reliable electric vehicles without compromising key performance." Battery production will take place at SK On's facility in the United States. SK On began proactive investments in the U.
S. back in 2019, leading to the construction of its factories and starting mass production in 2022. Since then, the company has built a stable production system, earning customer trust.
SK On has three commercial operations (SOP) set to launch in the U.S. this year and next.
By the end of 2026, it is expected that the U.S. factories will account for 50% of SK On's global production capacity (CAPA).
This partnership is significant as it expands SK On's battery supply to mid- to low-priced models. Until now, SK On has primarily supplied batteries for premium vehicle models. This move is expected to further contribute to the popularization of electric vehicles by providing high-performance batteries to a broader consumer base.
Meanwhile, Slate held a vehicle unveiling event on April 24 at 7 PM local time in Long Beach, California, showcasing its upcoming vehicle set for release next year. In attendance were Chris Barman, CEO of Slate, along with executives and key investors from the company. Lee Seok-hee, CEO of SK On, also participated in the event, underscoring the significance of the collaboration between the two companies.
Slate CEO Chris Barman stated, "Slate is not just a car manufacturer; it is a truck platform maximizing customization options," adding that the partnership with SK On has enabled them to showcase innovative vehicles that stand out in the market. Lee Seok-hee, CEO of SK On, remarked, "This collaboration reaffirms our technological capabilities and production capabilities in the U.S.
" He emphasized that the U.S. is a core strategic market for SK On and that the company plans to continue providing high-quality, locally produced batteries to secure various customers in the future.
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