EV Emergency

Financial Times report on SK-On sounds an alarm

SK On, the South Korean battery manufacturer whose applications are primarily for electric vehicles, said it was in crisis because its customers are struggling with lackluster EV sales in Europe and the United States, the Financial Times reported July 14. Chief Executive Lee Seok-hee plans to cut costs as part of the company’s "emergency management," according to the FT report, which cited a letter to employees.

The report sounds another alarm for EV advocates and those in related supply chain jobs, who've seen EV projections fall from their ambitious targets, according to various automakers over the past year.

SK On and Ford Motor Co. have a joint venture called BlueOval SK to make batteries for Ford and Lincoln EVs. Starting next year, BlueOval SK will run battery factories in Glendale, Kentucky, and in Stanton, Tennessee, according to its website.

SK On, a subsidiary of SK Innovation, also employs about 2,600 people at two EV battery plants in Commerce, Georgia, according to its website.