On April 10, 2025, SK IE Technology Co., Ltd. (SKIET) announced that it will begin supplying separator materials for electric vehicle (EV) batteries to North American clients starting this month. This initiative represents a significant advancement in SKIET’s global strategy, aiming to diversify its customer base and meet the rising demand for non-Chinese battery components influenced by recent U.S. policies.
In February, SKIET secured a mid-to-long-term supply agreement valued at 291.4 billion won (approximately $200 million) with a global client for prismatic lithium iron phosphate (LFP) battery separators. While the specific identity of the client remains confidential due to contractual obligations, the contract highlights SKIET’s competitive strengths in quality and pricing, especially in the context of tariffs imposed on Chinese separators.
The move comes amid the rapid expansion of the electric vehicle market in North America, driven by environmental concerns and government incentives promoting clean energy. Battery separators are essential components in lithium-ion batteries, ensuring safety and performance by preventing short circuits while facilitating ion flow. With geopolitical tensions between the U.S. and China, there is an increasing preference for non-Chinese battery materials among global clients, positioning companies like SKIET to benefit from this shift.
According to SNE Research, China dominated the battery separator market with an 88.8% share in the fourth quarter of the previous year. However, ongoing trade uncertainties are expected to open opportunities for non-Chinese manufacturers to capture a larger market share. SKIET’s strategic positioning is further reinforced by its parent company, SK Innovation, which is renowned for its leadership in advanced battery technology.
A SKIET representative commented, “Our strategy to diversify our customer base, focusing on the North American region, is continuously achieving positive results.” The representative added that the supply initiative is anticipated to significantly enhance sales volumes and operational rates at SKIET’s factories, thereby improving profitability.
Looking ahead, SKIET plans to supply enough separator materials to support up to 300,000 EVs by next year. This projection aligns with broader industry trends that favor lithium iron phosphate batteries for their safety and cost-effectiveness, catering to the growing demand in the electric vehicle and energy storage markets.
Source: Business Korea
