In the last few weeks, SKinno News has published the first two episodes about the early stage (1982 – 1993) and middle stage (1996 – 2005) of SK Innovation’s battery development history. 38 years ago, the history of SK Innovation’s battery business started with Yukong’s⁽¹⁾ decision to choose “Energy accumulating battery system” as its future business to achieve the vision of becoming a “Total Energy Solution Provider”. Entering the 2000s, SK Innovation’s battery business bloomed with the success of developing medium & large sized batteries for automobiles and winning the first order from global OEMs.

(1) Yukong: in 1982, Korea Oil Corporation changed its name to Yukong after being acquired by Sunkyung Group

This time, let’s take a look at the recent stage of SK Innovation’s battery history from 2006 to 2016.

| Recent stage of SK Battery (2006 – 2016)

01 | Sep. 2006 – SK succeeded in developing medium & large sized lithium-ion batteries for automobile

As presented in previous post regarding the middle stage of SK’s battery history, SK initiated the development of lithium-ion batteries in 1996, and announced its full-fledged entry into the rechargeable battery business in 2005. Later in 2006, SK embraces another remarkable moment that went down in the history of battery.

According to an article published on September 20, 2006 SK developed its own hybrid automobile battery (medium & large lithium ion battery) and recently succeeded in loading the battery in real automobiles at the test operation in the US.

The article also revealed that “SK initiated the development of hybrid automobile battery in 2004, succeeded in its development in March, 2006, loaded it in a hybrid car of Toyota for 3 months from June, and made its trial run in the official driving course in the USA”, and continued “as a result, the energy efficiency improvement effect was improved by more than 10% compared to the existing battery.”

02 | Oct. 2009 – The first overseas order of SK battery

According an artice on October 26, 2009, SK has concluded a contract of supplying the medium & large lithium ion battery for hybrid cars on October 25th to Mitsubishi Fuso, an integral part of Germany’s Daimler group.

The article added, “SK has assured its qualification to join as the priority business partner in hybrid and electric car development that Daimler group will proceed in the future after its conclusion of supply contract,” and “Germany’s Mercedes-Benz also belongs to Daimler group, so SK is likely to supply the battery not only for commercial hybrid cars but also for electric passenger cars.”

03 | Mar. 2010 – SK was selected as the battery supplier for Hyundai electric cars

The article released on March 31, 2010 quoted an SK official “SK has joined with Hyundai Motors in the national policy task of Korean Ministry of Knowledge Economy” and “SK’s battery will be put in 100% pure electric cars⁽²⁾ that will be commercialized first in the country.”

(1) Pure electric cars: Battery electric vehicle (BEV)

Moreover, the article revealed “SK, Hyundai Motors and Hyundai Mobis are joining in the national policy task of Small Electric Car Technology Development” of Ministry of Knowledge Economy” and “SK Energy was exclusively selected in the lithium ion battery system area.”

04 | Sep. 2010 – Hyundai Motors produces the national first electric car using SK battery

In an article released on September 10, 2010, it was reported that SK’s lithium ion polymer battery for electric car was installed on ‘BlueOn’, Korea’s first high speed electric car.

The article highlighted “the battery corresponding to the engine of diesel locomotive is the 16.4kWh lithium ion polymer battery for electric car developed by SK Energy,” and “the lithium ion polymer battery is 30% lighter and 40% smaller, with excellent efficiency, and higher utilization of space inside the vehicle than the existing Nickel hydrogen battery.” The article added “Hyundai Motos has secured 4 seats by putting this battery pack at the bottom of the vehicle.”

05 | Feb. 2011 – SK Innovation signed a contract to supply batteries for supercars with Daimler Group

An article released on October 2nd, 2011, reported that SK Innovation signed a contract to supply lithium-ion batteries for the “SLS AMG E-CELL” model made by the high-performance premium car producer Mercedes-AMG, a subsidiary of Mercedes-Benz.

“SK Innovation entered into a strategic technology cooperation with Daimler, which boasts the best technology in vehicle development, to supply its battery products,” the article added. It also said this was an opportunity to demonstrate SK Innovation’s battery technology.

06 | Jun. 2011 – Chairman Chey Tae-won visited SK Innovation Institute of Technology Innovation (formerly Global Technology)

In June 2011, Chey Tae-won, chairman of SK Group, visited SK Innovation Institute of Technology Innovation (formerly Global Technology) and showed his strong commitment to the EV battery business.

According to a newspaper article released on June 10, 2011, Chairman Chey Tae-won said that “The battery business will keep running until the day all cars use SK batteries. I will also run with it” when he visited SK Innovation’s Institute of Technology Innovation. The article continued by emphasizing that Chairman Chey’s words expressed his strong commitment to the medium and large-sized secondary battery business.

The article added, “As soon as he arrived at Daedeok, Chairman Chey visited the Mass Production Line 1 of of rechargeable batteries for EVs and encouraged employees at the site. In particular, he entered the site wearing a dustproof suit and listened to a rechargeable battery production technology presentation while also checking every product. He also visited a new construction site of rechargeable batteries for EVs research center and showed much interest.

07 | Apr. 2013 – SK Innovation signed a LOI (letter of intent) to establish a joint venture with Beijing Automotive Group and Beijing Electronics

A newspaper report released on April 23, 2013 revealed “SK Innovation signed a LOI (letter of intent) to establish a joint venture for EV batteries in Beijing on the 22^nd.”

The article added, “Until the production base of the joint venture is expanded, SK Innovation will supply battery cells produced at its Seosan EV battery plant to the joint venture partners.”

▲ SK Innovation signed a contract to establish a joint venture for EV batteries with Beijing Automotive Group and Beijing Electronics on July 5, 2013

About three months later, on July 5, 2013, SK Innovation signed a contract to establish a joint venture for EV batteries with Beijing Automotive Group and Beijing Electronics.

08 | Apr. 2014 – Kia Soul EV using SK Innovation batteries was launched

According to a report on April 10, 2014, Kia Motors launched ‘Soul EV’ with SK Innovation EV batteries mounted on it. Another report on April 14 said the automaker delivered the first Soul EV to SK Innovation.

The report revealed, “Kia Motors and SK Innovation signed an MOU to develop and increase adoption of EVs in 2012 and they have been cooperating since then. As a common efforts from both companies, Soul EV has been made with lithium-ion batteries of 27kWh, which has the highest level of energy density.”

09 | Jul. 2015 – SK Innovation completed expansion of Seosan battery factory

On July 30, 2015, an article reported, “SK Innovation said it completed the expansion of its EV battery plant in Seosan, South Chungcheong Province. This will increase its annual production capacity to supply from 15,000 units to 30,000 units of EVs. The commercial production was said to have just begun as well.”

The report continued, “The expansion was a follow up measure to meet the recent increase in demand from Kia Motors and BAIC, to which SK Innovation has been supplying batteries, for the Kia Soul EV, and BAIC EV200 and ES210 respectively.” It added, “The expansion will increase the company’s supply, and thus SK Innovation’s battery business is expected to triple sales this year (2015) compared to last year (2014).”

10 | Feb. 2016 – SK Innovation Will Supply Batteries to Mercedes Benz EVs

A report on February 18, 2016, reads SK Innovation concluded an agreement to supply its lithium-ion battery cells to Daimler’s Benz EV models which would be launched.

The report said, “On February 17, SK Innovation said it has concluded an agreement to supply its lithium-ion battery cells to Daimler’s Benz EV models which will be launched in 2017.” In addition, “With the agreement, SK Innovation will supply its lithium-ion batteries to the major EV project of Daimler Group’s Mercedes Benz. Daimler is going to assemble the battery cells from SK Innovation into packs and mount them on their EVs.”

11 | Nov. 2014 – SK Innovation expanded Seosan battery plant again

An article released on November 15^th, 2016, reported n SK Innovation’s plan to expand the battery factory in Seosan, Chungcheongnam-do, Korea. According to the article, SK Innovation’s expansion plan announced on November 14^th is due to the continued increase in EV battery orders at home and abroad.

The article also revealed “SK Innovation has decided to build a new battery production line that has annual production capacity of 800MWh, which can supply to 30,000 EV units per year at this plant by the first half of 2018,” and “all battery cells produced by the upcoming expanding line will be supplied to Daimler-Benz in Germany.”