South Korean battery maker SK On will go public no later than 2028, an up to a two-year delay from the initial date that was proposed.
Kim Jun, the vice chairman of SK On’s parent company SK Innovation, said on Thursday during SK Innovation's annual shareholders' meeting that the possible adjustment was because SK On’s results must be normalized prior to an IPO where it could get its full value.
Kim said SK Innovation expects SK On’s operation will start to enter the so-called normalization phase in 2025.
This was because its joint ventures with Ford and Hyundai are expected to start mass production of batteries aimed at the US that year.
Production will continue to ramp up in 2026 and 2027 after that and will reach the goal that SK On is hoping to reach, executives said.
The battery maker will also return to the black in the second half of 2024, they said.
The battery industry suffered a slowdown in growth last year due to the lowered demand for electric vehicles.
SK On’s quarterly profits improved last year but the start of the operation of new factory lines this year is expected to negatively impact its profitability in the short term, the company said.
During the second half of 2024, with inventory level down, lowered interest rates and the start of operation of customers’ new electric vehicle production lines will cause EV demand to become strong again, it added.
