[CES 2024] SK On Choi Jae-won "Developing Cylindrical Batteries... Challenging Mass Production of 3 Major Form Factors"

Met with reporters at Las Vegas LVCC on the 10th
Asked about this year's turnaround
"Not sure if the results will be as desired"

Choi Jae-won, Senior Vice Chairman of SK Group, is answering questions from the press at the SK Group pavilion at CES 2024 held in Las Vegas, USA, on the 10th (local time). Photo by SK On

Choi Jae-won, Vice Chairman of SK On, announced that the company is developing cylindrical batteries.

SK On to Complete All Three Major Battery Form Factors

On the 10th (local time), Choi Jae-won met with reporters at the Las Vegas Convention Center (LVCC) Central Hall in Nevada, USA, and said, "It has been quite some time since we started developing cylindrical batteries," adding, "We have already completed the development of prismatic batteries and are currently working on cylindrical batteries." Regarding the reason for developing and mass-producing all three major form factors, he said, "Each customer demands different specifications, so we are developing all three form factors to respond accordingly," and added, "We aim to broaden our customer base."

Cylindrical batteries are shaped like the common batteries used in everyday life. They have standardized dimensions such as diameter and length, like the '4680' and '2170' batteries. Because of this, they are known to be advantageous for stabilizing and optimizing large-scale manufacturing processes. If SK On succeeds in mass-producing cylindrical batteries, it will become the first domestic company to develop and mass-produce all three major form factors (battery types), including prismatic and pouch types. CATL was the first in the world to start mass production of all three form factors last year.

Regarding K-On's turnaround (profitability), he said, "We are making great efforts, but the current automobile market is not favorable," adding, "I am not sure if the results will meet our expectations, but we will do our best." He also mentioned, "Batteries sell when EVs (electric vehicles) sell well," and added, "This year, volume (sales size) is the biggest issue." SK On aims to achieve profitability this year. On the plan for SK On's stock listing, he said, "Considering the macro environment, it is difficult to predict now," but added, "We will proceed as soon as a feasible time comes."

On the same day, Vice Chairman Choi toured booths of Samsung, LG, Panasonic, and others within the LVCC Central Hall to check technology trends. Although the booths were not centered on batteries, all three companies have business units that mass-produce batteries. It is known that Vice Chairman Choi paid close attention to AI, the key theme of this CES. Regarding the possibility of applying AI to manufacturing processes, he said, "SK On is actively applying AI to manufacturing processes, but if there is a new technology that is better, we will naturally adopt it."

Choi Jae-won, Senior Vice Chairman of SK Group (right), is listening to an explanation about the future mobility concept 'Alphabl' from an official at the LG Electronics booth during CES 2024 held in Las Vegas, USA, on the 10th (local time). Photo by SK On

Vice Chairman Choi Jae-won Continues Intense CES Schedule

Vice Chairman Choi continued his intense schedule on the second day of CES. In the morning, he toured booths of major global companies, and in the afternoon, he attended business meetings. Over two days, he walked more than 10,000 steps each morning while visiting booths, then continued relay meetings over lunch with boxed meals and sandwiches.

On the first day of CES, the 9th, the first place he visited was the booth of Israeli autonomous driving sensor company 'Mobileye.' Mobileye is known for developing the world's first advanced driver-assistance system (ADAS) and attracted attention when Intel acquired it for 18 trillion won. It is also known for designing the autonomous driving chip used in the early version of Tesla's Autopilot. There, he coincidentally met Hyundai Motor Group Chairman Chung Eui-sun and exchanged warm greetings.

The meeting with Chairman Chung occurred twice that day. Chairman Chung visited the SK Group booth 'SK Wonderland,' where Vice Chairman Choi personally welcomed him. Vice Chairman Choi introduced SK Group's ongoing 'Net Zero' business and reaffirmed the intention to expand cooperation between the two companies. When asked by reporters about the conversation with Chairman Chung, Vice Chairman Choi smiled and said, "Personally, we have known each other for decades and are close, but since he came as our guest, we talked about group (business) related matters."

In addition, Vice Chairman Choi visited companies including American heavy equipment manufacturer John Deere, Hyundai Motor Company, Doosan, LG, Panasonic, and Samsung to check the latest mobility and eco-friendly technologies utilizing artificial intelligence (AI). John Deere is recognized as an innovative company promoting electrification of major agricultural machinery, following the introduction of an electric excavator at CES 2023.

When asked about his impressions of CES, Vice Chairman Choi said, "I mainly looked at automobile and battery-related technologies, and it seems there are many changes," adding, "I could really feel that the industry itself is changing rapidly." In fact, Vice Chairman Choi personally rode John Deere's electric tractor and LG's connected concept car, and inquired about the performance of hydrogen and electric vehicles at Hyundai Motor Company, showing great interest in mobility technology.

Meanwhile, Vice Chairman Choi held business meetings with more than 11 companies over two days to discuss business cooperation. He is scheduled to depart on the 11th after concluding his CES schedule.