[Infinite Power] SK's 40 Years of Memories in Developing Electric Vehicle Batteries

[Asia Economy Reporter Park So-yeon] "In 1982, we set the vision of a 'comprehensive energy company'." SK Innovation presented evidence that it had drawn up a blueprint for its battery business 38 years ago.

In 1982, when Korea Oil Corporation, acquired by Seonkyung Group, changed its name to Yukong, Chairman Choi Jong-hyun made a decisive move to transform the company from a petroleum specialist to a comprehensive energy company. This was the starting point for the current SK Innovation, which has divisions in refining, chemicals, lubricants, and batteries.

The 'Seonkyung 40-Year History' published in 1993 records that at a meeting held on December 9, 1982, Chairman Choi stated, "We must change direction to become a comprehensive energy company. This should include not only refining but also coal, gas, electricity, solar energy, nuclear power, and energy storage battery systems," thus setting the direction.

He also emphasized, "In ten years, the proportion of refining business should be relatively lower compared to other energy businesses," and added, "Technology accumulation does not happen overnight, so we must steadily train engineers and move towards a technology-intensive direction from now on."

Just three years after unveiling this blueprint, in 1985, Yukong became the first in the refining industry to establish a Technology Support Research Center in Ulsan. The Technology Support Research Center has since relocated to the Daedeok Innovation Research Institute. According to an article dated November 12 of that year, Yukong made a large-scale investment of 10 billion won in the Technology Support Research Institute at the time.

The first results appeared in 1991. They succeeded in manufacturing a three-wheeled electric vehicle using solar cells and conducted performance tests. The media extensively reported this achievement. "Yukong particularly embarked on developing batteries with low weight and high energy density by selecting one among nickel-cadmium, nickel-hydrogen, and sodium-sulfur batteries," the reports said.

The electric vehicle prototype made by Yukong had a top speed of 20 km/h and a single-charge driving range of 40 km. Although this performance is significantly lower than current batteries that can travel over 600 km on a single charge, achieving such results 30 years ago was exceptional.

At that time, only four companies worldwide possessed battery technology: HBS in Canada, HBB in Germany, Chloride in the UK, and NDK in Japan. This was mentioned in an article titled 'Selection of the Leading Institution for Advanced Batteries for Yukong Electric Vehicles' published in the December 1992 issue of 'Yukong Newsletter No. 6.'

Now, 28 years later, Yukong's battery research is being continued by SK Innovation. Although it was labeled a latecomer due to delayed large-scale commercial production despite early entry into electric vehicle battery R&D, SK Innovation has once again attracted global market attention by becoming the first in the world to develop NCM (Nickel-Cobalt-Manganese) 9½½ cathode material batteries.

SK Innovation aims to be a global top-tier company, with electric vehicle battery production bases not only in Korea but also in the United States, China, and Europe. The battery production capacity, which was 20 GWh this year, will expand to 100 GWh by 2025. Currently ranked 6th globally, SK Innovation is on the verge of entering the top 5.

In the upcoming fourth quarter, SK Innovation will mass-produce batteries to be applied from early next year to Hyundai and Kia Motors' dedicated electric vehicle platform (e-GMP). This is expected to generate sales of 10 trillion won over five years. SK Innovation's battery business, which is still operating at a loss, aims to turn profitable from this point.

An SK Innovation official emphasized, "The electric vehicle battery business did not suddenly start and reach its current growth trajectory overnight," adding, "The dream of becoming a total energy solution provider, which began over 40 years ago, is still ongoing."

Excerpt from 40 Years of Service at Yukong - 'Meeting between Former Chairman Choi Jong-hyun and Yukong Deputy General Manager' held on December 9, 1982