SK On Signs MOU with Siemens to Establish Smart Factory System

"Expectations for Manufacturing Innovation and Operating Cost Reduction"

SK On is partnering with the German industrial automation solutions company Siemens Digital Industries Software to establish a smart factory system in South Korea.

On the 14th, SK On announced that it recently signed a Memorandum of Understanding (MOU) with Siemens at the SK Seorin Building in Jongno-gu, Seoul, to collaborate on the development of a digital twin for battery manufacturing plants.

A digital twin is a technology that replicates a factory in a virtual environment before and after design and operation to simulate processes. It allows for faster verification of optimized manufacturing lines compared to traditional methods, thereby shortening the construction period of new factories.

SK On will utilize Siemens’ open digital business platform 'Xcelerator' product suite, which includes digital twin software and simulation technologies. SK On explained that real-time monitoring technology between the virtual factory and the actual site can significantly reduce equipment maintenance time and operating costs. Equipment maintenance time refers to the downtime during regular inspections or malfunctions.

SK On will first build the digital twin factory domestically. Based on this, it plans to expand to factories worldwide, including in the United States and Europe, further concretizing its smart factory promotion strategy.

On the 12th, at the SK Seorin Building in Jongno-gu, Seoul, Lee Seok-hee, President of SK On (left), and Tony Hemmelgarn, CEO of Siemens DISW, are posing for a commemorative photo after signing a Memorandum of Understanding (MOU) for cooperation in developing a digital twin for battery manufacturing plants.
[Photo by SK On]

Last year, SK On implemented its smart factory strategy by signing MOUs with domestic and international partners to intelligentize battery production equipment. The smart factory targets include controllers that manage equipment control, smart sensors for monitoring, communication networks, and power devices.

Lee Seok-hee, CEO of SK On, said, "To strengthen manufacturing competitiveness, SK On will expand cooperation with leading global partners, including Siemens."

Tony Hemmelgarn, CEO of Siemens Digital Industries Software, stated, "We are pleased to collaborate with SK On to enable digital production innovation and create a sustainable battery industry through the Siemens Xcelerator portfolio."