SK On & SK enmove Merger Completes, Establishing "SK On" to Strengthen Battery Competitiveness

Expected Synergies from Technological Innovation & Capital Infusion to "Accelerate Growth Momentum"

SK On's Safety Tech Platform (Seoul=Yonhap News) Reporter Yoon Dong-jin = A model of an electric vehicle chassis, incorporating technologies such as immersion cooling, is displayed at the SK On booth during InterBattery 2025 held at COEX in Gangnam-gu, Seoul on March 5th. 2025.3.5 mon@yna.co.kr

SK On officially completed its merger with SK enmove as of the 1st.

SK enmove will continue its operation as a corporate-internal company (CIC) along with SK Trading International, and the merged entity will be integrated under the name "SK On."

According to industry sources, the two companies have been operating a separate "PMI (Post-Merger Integration) Task Force (TF)" since the integration announcement in July to maximize merger synergies in core areas such as technology, business, and finance.

This merger is notable for bringing together SK On, a global top 5 battery company, and SK enmove, a global top-tier fluid company.

Synergies are particularly expected in the area of technological innovation.

SK On is pursuing the commercialization of a package solution that integrates SK enmove's immersion cooling fluid technology with its own Cell-to-Pack (CTP) technology.

Immersion cooling technology, which dissipates heat by directly circulating insulating fluid within the pack, is expected to see rapidly increasing demand across various industries, including electric vehicles, energy storage systems (ESS), data centers, and even ships.

Cell-to-Pack simplifies processes and components by directly connecting battery cells to the pack without modules. It offers excellent improvements in energy density and cost reduction, making it a key competitive advantage in the battery industry.

By integrating the technological capabilities of both companies, it is anticipated that the safety of modules, which are omitted in future package solution commercialization, can be compensated for through the convergence with immersion cooling technology.

In terms of business, it is projected that cross-selling and new business development will be possible by leveraging the global finished vehicle and industrial customer networks of both companies.

SK On supplies batteries to global automakers such as Hyundai Motor Group, Ford, Volkswagen, Mercedes-Benz, and Ferrari, while SK enmove has also secured a base of leading global OEM customers.

Financial effects are also significant. Following the merger, an additional operating profit before depreciation and amortization (EBITDA) of approximately 800 billion won per year and a capital infusion effect of 1.7 trillion won are anticipated.

At SK Innovation's corporate value enhancement strategy briefing in July, SK On announced its goal of generating over 200 billion won in additional EBITDA by 2030, based on the merger synergies with SK enmove.

The integrated SK On plans to achieve its goals of generating over 10 trillion won in EBITDA by 2030 and maintaining a debt-to-equity ratio below 100%, based on profitable growth and a strengthened financial structure.

Following its merger with SK Trading International last year, SK On has been accelerating synergy creation by establishing a 'Raw Material Trading Promotion Team' under its Singapore subsidiary.

SK On emphasized, "With the merger with SK enmove as a starting point, we plan to lead industrial innovation as a global top-tier battery and fluid integrated solution company," and added, "We will strengthen the fundamental competitiveness of our battery business and accelerate future growth momentum based on the expansion of the global market." Yonhap News