SK Innovation CEO Choo Hyeong-wook on Tuesday reaffirmed the group’s commitment to its battery business at a shareholders meeting in Seoul, dismissing concerns over a potential stake sale of SK On.
“SK Innovation remains strongly committed to the battery unit and its long-term growth,” he said.
Choo pledged to strengthen profitability and technological competitiveness at SK On as the company continues restructuring amid a slowdown in electric vehicle demand.
SK Innovation, he said, is optimizing its global battery operations and production footprint to improve profitability and capital efficiency in response to weaker demand.
SK On will prioritize profitability over volume in its EV battery business, while continuing to enhance cost competitiveness and technology through research and development.
At the same time, the company is expanding into the energy storage system market, particularly in North America, where demand is growing. SK On is in talks with multiple clients to supply more than 10 gigawatt-hours of ESS batteries, with annual production capacity in the region expected to reach 20 gigawatt-hours.
The restructuring comes as SK On faces mounting pressure from weaker earnings. The company posted revenue of 7 trillion won ($4.7 billion) and an operating loss of 931.9 billion won in 2025.
SK On has implemented workforce adjustments, including a second round of voluntary retirement programs in Korea since 2024 and layoffs at its US subsidiary SK Battery America, which recently cut 968 jobs — about 37 percent of its workforce — at its Georgia plant.
Industry analysts attribute the restructuring to a broader slowdown in the global EV market and tougher conditions in the US, where EV tax credits have been phased out since October.
Looking ahead, Choo said SK Innovation will strengthen its capabilities in key growth areas, including batteries, as part of its strategy to evolve into a “total energy company” amid accelerating electrification and AI-driven demand.
By Byun Hye-jin (hyejin2@heraldcorp.com)
