SK Signet "First 400kW-class Charger Mass Production in US... Also Meets Subsidy Requirements"

"It meets all the Buy American conditions. We will continue to lead the U.S. market as the number one company in ultra-fast chargers."

SK Group’s SK Signet has completed its production base in Texas, USA, and will begin commercializing the first local 400kW ultra-fast charger starting next month. By swiftly responding to the Biden administration’s large-scale subsidy policy, the company aims to solidify its leading position in the U.S. charger market and achieve sales of 1 trillion KRW by 2025.

On the 5th (local time), Shin Jeong-ho, CEO of SK Signet, met with correspondents at the completion ceremony of the production plant (SSMT) located in Plano, Texas, and announced, "We will surpass 1 trillion KRW in global sales by 2025." SK Signet, acquired by SK Inc. in 2021, is the number one company in the local ultra-fast charging market, earning over 80% of its total sales from the U.S., the world’s largest electric vehicle market. Thanks to the rapidly growing electric vehicle and charger markets, this year’s sales are expected to double last year’s 160 billion KRW to 320 billion KRW. The goal is to expand to 1 trillion KRW within three years. In terms of market share, it holds 25-30% globally and 40-50% in the U.S.

In particular, the completion of the Texas plant with an annual capacity of 10,000 units is considered a major milestone for SK Signet’s growth. CEO Shin emphasized the significance of the Texas plant’s completion, stating, "Through the Texas plant, we have fulfilled all Buy American requirements, including ▲final assembly in the U.S. ▲use of U.S.-made steel ▲simultaneous charging of four 150kW electric vehicles," which are part of the electric vehicle charging infrastructure subsidy policy.

For SK Signet, this proactive response to the U.S. subsidy policy has laid the foundation to secure a leading position in the U.S. charger market, which is expected to grow to $3.2 billion by 2025. CEO Shin expressed confidence, saying, "A very large subsidy market has opened in the U.S., and SK Signet is ahead of other competitors in both production scale and timing." Since the Biden administration added the requirement to use U.S.-made steel starting this year, only SK Signet, Tesla, and Tritium currently meet all subsidy criteria.

Currently, SK Signet dominates the U.S. charger market in the 200kW and above segment, while Tesla leads the fast charging segment. CEO Shin acknowledged, "Tesla also meets all subsidy requirements and is our strongest competitor." However, unlike SK Signet’s 350-400kW ultra-fast charging capability, Tesla mainly focuses on fast charging below 200kW for its own vehicles. Additionally, Tesla’s Magic Dock, which opens its charging network to other electric vehicles, has only 11 units.

CEO Shin said, "For now, it is not a significant threat to SK Signet," but expressed concern that "if Tesla increases output, popularizes Magic Dock, and strengthens cooperation with other automakers like Ford, it could become a greater threat." Nevertheless, he expressed confidence, stating, "SK Signet has strengths in the ultra-fast market and possesses know-how from compatibility testing with numerous vehicle brands. We also have a system in place to respond quickly in the U.S." He emphasized, "We are not competing in a small market but in a rapidly growing one," and predicted, "We will be able to maintain our strengths for a considerable period."

Regarding concerns that Europe and other regions might strengthen related regulations such as requiring European-made components, similar to the U.S.’s Buy American policy, CEO Shin responded, "That possibility is quite high." On criticisms that the use of U.S.-made steel might negatively impact the Korean steel industry, he said, "This market is growing. Local production will not reduce the use of Korean steel but will enable more use of both U.S. and Korean steel." He also mentioned that he is considering more than doubling the production scale of the Korean plant located in Yeonggwang, Jeollanam-do.

Through the Texas production base, SK Signet has established a global production system of 20,000 units. The Texas plant will begin producing the V2 product, capable of output up to 400kW from a single port, starting in the second quarter, with sales planned for the U.S., Europe, and other markets. The V2, first introduced at CES 2023, is an ultra-fast charger that can charge an Ioniq 5 vehicle to 80% in just 15 minutes. This is the fastest speed among all ultra-fast chargers produced in the U.S. currently.

At the completion ceremony, a charging demonstration event using the V2 product attracted attention from customers and partners. When simultaneously charging a Ford F-150 and Hyundai Ioniq 5, equipped with 800V and 400V batteries respectively, the maximum output of 250kW and 150kW was confirmed in just twenty seconds.

Adriana Cruz, Director of the Texas Economic Development Department, attending the ceremony, on behalf of Governor Greg Abbott, expressed gratitude for SK Signet’s support in revitalizing the electric vehicle charging infrastructure industry and promised that Texas would continue to provide active support and cooperation as a long-term partner. Representatives from major customers such as Electrify America, EVgo, Level, and Apple Green Electric also joined to celebrate the completion. Yoojung Jun, Vice Chairman of SK Group’s North America External Cooperation Division, stated, "SK Signet’s production facilities will become the future of manufacturing and transportation industries and will greatly contribute to the spread of electric vehicles."