SK On and SK Innovation to Strengthen ESS Safety with VIB Partnership Agreement with Standard Energy

VIB-Based ESS Batteries: Enhanced Fire Safety
Diversifying Chemistry, Strengthening the Portfolio

SK On and SK Innovation are joining forces with Standard Energy, a domestic company specializing in vanadium ion battery (VIB)-based energy storage systems (ESS), to strengthen their presence in the ESS business. Through this collaboration, their strategy is to expand their portfolio in the ESS sector beyond lithium iron phosphate (LFP) batteries to include VIBs, which offer enhanced fire safety, thereby further reinforcing battery safety.

Lee Seokhee, President of SK On (second from the left), is listening to an explanation about vanadium ion batteries from Kim Bugi, CEO of Standard Energy (right), at the Standard Energy production plant in Daedeok-gu, Daejeon on the 5th. SK On

SK On and SK Innovation announced on January 6 that they had signed a memorandum of understanding (MOU) for "technological development and business cooperation in secondary batteries" with Standard Energy at Standard Energy's headquarters in Daejeon. The signing ceremony, held the previous day, was attended by Lee Seokhee, President of SK On; Park Kisoo, Head of Future Technology Institute at SK On; Kim Pilseok, Head of Environmental Science and Technology Institute at SK Innovation; and Kim Bugi, CEO of Standard Energy.

The core of this agreement is technological cooperation to enhance the performance of high-safety, high-output VIBs for ESS, which are suitable for short-duration ESS applications. ESS can be categorized as short-duration or long-duration, depending on the storage period. Short-duration ESS typically stores and discharges energy for less than four hours. It is mainly used in data centers and industrial facilities, where repeated high-output operation in a short period is required, making safety and output performance crucial.

SK On, leveraging its experience in mass battery production, will expand technological cooperation with Standard Energy across the entire value chain, from raw material procurement to materials, cells, and battery management systems (BMS). The company will also pursue differentiated technological developments, such as large-area cell design. SK Innovation will work on improving material performance through the development of electrolyte additives, while also seeking ways to reduce costs by utilizing vanadium recovered from refining processes.

Through this collaboration, SK On will broaden its product portfolio to include VIBs, in addition to nickel cobalt manganese (NCM) and LFP batteries, focusing on a strategy centered on battery safety. VIBs use an electrolyte with water as the main component, eliminating the risk of fire and explosion, and their high output makes them suitable for short-duration ESS.

In particular, Standard Energy's VIB ESS was installed in downtown Seoul under the Ministry of Trade, Industry and Energy's regulatory sandbox program and operated without a single incident. Subsequently, it has also been installed and operated in subway stations and buildings with high foot traffic, where its safety and performance have been verified.

Standard Energy, having developed VIBs specialized for ESS for the first time in the world, has succeeded in demonstrating and commercializing VIB ESS, earning recognition for its technological capabilities and business potential. The company supplies VIB ESS to numerous clients. In March last year, it was the only Korean company named among "The World's Best GreenTech Companies of 2025" by Time magazine, further demonstrating its internationally recognized technological prowess.

President Lee Seokhee stated, "Through this collaboration, we will be able to further strengthen our product portfolio by jointly developing vanadium ion batteries for ESS with outstanding fire safety," adding, "We will provide new value to our customers based on world-class technological competitiveness."