SK Innovation's subsidiary forges long-term supply deal with N. American companies

By Park Sae-jin Posted : June 2, 2023, 15:23 Updated : June 2, 2023, 15:23

[Courtesy of SKIET]

SEOUL -- SK IE Technology, a battery separator-making wing of SK Innovation, has forged long-term supply deals with companies in North America and other countries, the company said during a conference call.
Battery separators act as a barrier between the anode (negative) and cathode (positive) electrodes while allowing the exchange of lithium ions from one side to another. It is a vital component of high-capacity, high-performance lithium-ion batteries commonly used in electric vehicles.
SK IE Technology (SKIET) said that the contract period of the deal is from October 2023 until September 2030. The announcement was made in a regulatory filing on June 2, without disclosing details about the contract amount and companies involved in the deal as requested by interested parties.
According to SKIET, the contract amount would be more than 2.5 percent of the company's annual revenue of 585.8 billion won ($448.5 million) in 2020, which would be at least 14.6 billion won. Through the deal, SKIET's business in the North American market would gain a boost. The United States requires battery makers to use more than 90 percent of battery materials and components manufactured on American soil to receive full tax benefits.
When the deal is confirmed, SKIET said that it would finish the construction of a battery separator factory by 2027 and increase the manufacturing capacity of separators from the current 1.53 billion square meters to four billion square meters by 2025. 
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