Giant Car Battery Supplier Teeters on the Brink of Bankruptcy

Written by Kathrine Frich

Jul.10 - 2024 10:40 AM CET

Photo: Shutterstock
Photo: Shutterstock
They are supplying battery packs to popular brands like Kia, Hyundai, Ferrari and Ford

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Fisker Inc.'s recent bankruptcy filing may have grabbed headlines, but another major player in the automotive industry, SK On of South Korea, is now facing similar financial woes.

Consecutive Losses

According to reports from Nyheder24 SK On, known for supplying battery packs to popular brands like Kia, Hyundai, Ferrari, Ford, and Polestar, is struggling to stay afloat amid a prolonged financial downturn.

For the past 10 quarters, SK On has reported consecutive losses, putting immense pressure on its financial stability. The company's debt has ballooned to approximately 72 billion Danish kroner (about 10.7 billion USD), painting a grim picture of its financial health.

Back against the wall

Lee Seok-hee, the CEO of SK On, acknowledged the dire situation, stating, "We have our backs against the wall, and it's time for all of us to pull together."

The company's woes are exacerbated by a fierce price war in China's battery market, where competitors like BYD and CATL are aggressively vying for market share.

SK On's financial troubles come amidst a backdrop of intense competition and rapidly evolving technology in the electric vehicle sector. While the company continues to supply critical components to some of the world's leading automakers, its ability to navigate through these financial challenges remains uncertain.

As stakeholders and industry observers closely monitor developments, the future of SK On hangs in the balance, with potential implications for the broader automotive supply chain and electric vehicle market.