SK On scores 20GWh battery supply deal with US EV startup Slate

SK On announced Friday that it has secured a contract with US electric vehicle startup Slate to supply 20 gigawatt-hours of EV batteries as the Korean battery maker continues to expand its customer portfolio in the North American market.

The 20 GWh battery supply agreement, which is enough to power about 300,000 mid-sized EVs, will begin next year and last through 2031. Although the value of the contract was not disclosed, industry watchers estimate that the deal is approximately worth 4 trillion won ($2.78 billion).

The latest contract announcement came little over a month after SK On had inked a six-year, 99.4 GWh battery supply deal with Nissan to equip the latter’s next-generation EVs specifically developed for the North American market from 2028 to 2033.

“This partnership with Slate demonstrates how our US manufacturing capabilities are enabling more effective and flexible support for innovative customers,” said SK On CEO Lee Seok-hee.

“North America is a key market for us, and we are committed to delivering reliable, high-quality batteries that support our partners in making EVs more accessible, while reducing emissions and advancing sustainable mobility.”

According to the announcement, SK On and Slate agreed on an option to expand the battery supply if the latter decides to ramp up its EV production later on.

Established in 2022 in Michigan, Slate plans to launch a two-door electric pickup truck next year with an aim to set its price lower than $30,000. SK On noted that the partnership with Slate signifies the battery maker’s strategic move to supply batteries for more affordable EVs in addition to its premium EV model supply deals.

Slate’s electric pickup truck will be powered by SK On’s high-nickel, cobalt, manganese, or NCM battery.

“Slate is a truck platform so customizable that it can transform from a 2-seat pickup to a 5-seat (sport utility vehicle),” said Slate CEO Chris Barman.

“SK On’s innovative approach and partnership has allowed us to meet our target of delivering a radically affordable vehicle.”