SK On plans to order up to 1.3 trillion KRW worth of U.S. electric vehicle battery plant equipment next month. With the annual production volume being 80GWh of batteries, this is the largest single order ever to be made. Orders are to be expected from domestic process equipment makers and Chinese companies that have been working hand-in-hand with SK On.
SK On is currently receiving price estimates from major battery process equipment manufacturers along with some Chinese companies. Equipment to be ordered include electrode, chemical, and assembly process equipment, with mixing. The factory installation size amounts to 83 to 84 GWh in computational capacity, and the order value ranges from 1.2 trillion KRW to 1.3 trillion KRW depending on the bidding competition. The plants — with sizes of about 40 GWh each — will be located in Tennessee and Kentucky, where joint factories of SK on and Ford are also to be built. It is likely that the selection of companies is a way to proceed with the construction of the two factories at once.
SK On's U.S. plant will have a production speed of 22PPM, and will be equipped with new facilities that can produce 22 cells per minute per line. There will be 32 to 34 lines in both locations, producing approximately 700 battery cells per minute.
The equipment is expected to be mainly supplied by South Korean companies that have worked with SK On's form factor pouch-based high-nickel cell batteries. Up until now, SK On has selected one company for each process, but since this is the first order of a joint venture with Ford, it is highly possible that two companies for each process will be selected in order to build more stable facilities. So far, companies such as PNT and CIS have been in charge of supplying electrode process equipment to SK On, with Yunsung F&C and TSI for mixing equipment, Hana Technology and mPLUS for assembly process equipment, and Wonik PNE and Hangke of China for chemicals and other equipment.
"SK On’s equipment order is the largest in history, and prices will fall significantly due to an overheated competition among equipment makers," an industry official states. "It is highly likely that some Chinese companies' equipment will be included."
After SK On completes the selection and contract of manufacturers, equipment orders will begin for the Ankara plant in Turkey as early as November. It is reported that the Ankara plant will have 16 production lines at the 22PPM level.
By Staff Reporter Tae-jun Park (gaius@etnews.com)