The merger of SK On, centered on the battery business, and SK Enmove, centered on the lubricants business, was completed on the 1st. With the merger of the two companies, SK On is expected to work to strengthen the competitiveness of its battery business by improving its financial structure. The two companies also plan to develop a battery pack that incorporates immersion cooling technology and to expand their business scope by sharing customers.
According to the industry on the 4th, the merged corporate name of the two companies has been set as SK On, but SK Enmove will be maintained as a company-in-company (CIC).
The two companies are expected to generate synergy in technology. SK On plans to introduce an integrated package solution by applying SK Enmove's immersion cooling fluid technology to its own battery packs. Secondary battery manufacturing goes through the stages of cell → module → pack, but using SK Enmove's immersion cooling technology allows the adoption of "cell-to-pack (CTP)" technology that skips the module process.
An industry official said, "If the module disappears, you can put in more cells, which raises energy density while saving costs. Safety may decrease, but immersion cooling technology can help improve safety." SK On believes it can supply cell-to-pack not only to electric vehicles but also to various industries such as energy storage systems (ESS), data centers, and ships.
The two companies also expect to expand their business scope by sharing customers. SK On supplies batteries to global automakers such as Hyundai Motor Group, Ford, Volkswagen, Mercedes-Benz, and Ferrari. SK Enmove has global companies as customers in the lubricants market.
It also helps financially. In July, SK On said at SK Innovation's corporate value enhancement strategy briefing that by merging with SK Enmove it would generate more than 200 billion won in additional earnings before interest, taxes, depreciation and amortization (EBITDA) by 2030.