SK On Partners with Slate for Exclusive Battery Supply Agreement

According to foreign media reports, SK On is seeking a business revival by reaching an exclusive battery supply agreement with Slate, a U.S. electric vehicle startup backed by Amazon founder Jeff Bezos. Slate has showcased its new highly customizable compact electric pickup truck to the public in Michigan, which is set to officially launch next year. In April of this year, SK On and Slate announced a 20 GWh battery supply agreement, making SK On the first officially designated battery supplier for Slate. This capacity is expected to meet the demand for 300,000 electric pickups that Slate plans to produce between 2026 and 2031. Industry experts predict that SK On stands to benefit from Slate's competitive pricing strategy. In June, Slate received over 100,000 pre-orders for its electric pickup truck in just two weeks, nearly half of the weekly pre-order volume of Tesla's new Cybertruck. The starting price for Slate's new electric pickup is expected to be $27,500 (excluding tax incentives), which is less than half of the average price of existing electric pickups in the U.S. In contrast, mainstream electric pickups in the current U.S. market have significantly higher starting prices: the Ford F-150 Lightning starts at around $55,000, the Rivian R1T starts at about $70,000, and the Tesla Cybertruck starts at over $60,000. SK On emphasizes that Slate's low pricing strategy is expected to seize the rapidly growing opportunities in the U.S. electrified light truck segment. According to a recent report by the American Automotive Innovation Alliance, electric SUVs, pickups, and vans accounted for about 79% of total electric vehicle sales in the U.S. region by the first quarter of this year. An insider noted, 'Slate's reasonable pricing strategy provides environmentally friendly model options for consumers who cannot afford high-priced electric vehicles, aligning with SK On's vision of making electric vehicles accessible to more consumers.' As battery manufacturer SK On breaks through traditional high-end market limitations and expands into the mid-to-low-end electric vehicle sector, investors and analysts are closely monitoring whether the company can turn a profit in the second quarter of this year. Notably, in the first quarter of this year, SK On reported sales of 1.6 trillion won (approximately $1.2 billion), a slight decline of 4.6% year-on-year; however, its operating loss narrowed by 9.7% year-on-year to 299.3 billion won.