SK IE Technology Co. has begun supplying electric vehicle battery separators to North American clients this month, accelerating its global expansion strategy amid growing demand for non-Chinese battery components.
The South Korean battery materials maker secured a mid-to-long-term supply contract worth 291.4 billion won ($200 million) in February for prismatic lithium iron phosphate battery separators with an undisclosed global client. This follows a February partnership with Chinese battery manufacturer Gotion to supply separators to their upcoming manufacturing plants in Illinois and Slovakia.
SKIET has already completed verification processes for supplying separators for EV and energy storage system batteries at Gotion’s production facilities. The company plans to provide enough materials for up to 300,000 electric vehicles by 2026.
The push into North America comes as battery makers seek alternatives to Chinese suppliers amid geopolitical tensions and U.S. trade policies. China dominated the battery separator market with an 88.8% share in last year’s fourth quarter, according to SNE Research.
SKIET President Kim Cheol-jung previously mentioned studying possibilities to advance into the North American market, where the company expects high growth. The firm currently operates separator factories in South Korea, China and Poland with plans to expand its global production capacity.
A company representative noted the supply initiative would significantly improve sales volume and factory operation rates, potentially boosting profitability as the firm leverages its competitive edge in both quality and pricing.
