SK Innovation merges e-mobility and lubricants subsidiaries
Major capital infusion and portfolio restructuring aim to boost competitiveness, synergy, and financial stability.
SK Innovation has announced a significant restructuring move with the merger of its electric vehicle (EV) battery unit, SK On, and its lubricant and cooling solution arm, SK Enmove. The merger is set to take effect next November and is part of a broader strategy to establish SK Innovation as a top-tier total energy company in the electrification era.
The newly merged entity will operate under SK On, consolidating capabilities in EV batteries, energy storage systems, lubricants, immersion cooling, and EV refrigerants. The goal is to drive synergy across shared customer bases, expand into new markets, and offer integrated solutions.
Lee Seok-hee, CEO of SK On, commented: “With the expected synergies from the merger, including the integration of both companies’ technological and business capabilities, we anticipate showcasing a higher level of competitiveness in the global market.”
Strengthening SK’s financial stability through capital expansion
In tandem with the merger, SK Innovation is embarking on a large-scale capital expansion to stabilize its financial position and fuel future growth. The company aims to raise ₩8 trillion (approx. $6 billion) in new funding in 2025 through a combination of third-party allotments, perpetual bond issuance, and capital injections from group affiliates including SK IE Technology (SKIET).
Additionally, the company will optimize its asset portfolio by divesting non-core businesses, targeting a reduction of ₩1.5 trillion in net debt this year.
SK Innovation is targeting an ambitious ₩20 trillion in EBITDA by 2030 while keeping net debt below the same level. This vision builds on a series of strategic mergers and reorganizations, including the previous integration of SK E&S and SK Trading International, to create a vertically integrated energy portfolio encompassing oil, LNG, electricity, batteries, and chemical solutions.
Jang Yong-ho, Executive President of SK Innovation, said: “Through this dual-track business and financial portfolio rebalancing, we aim to improve EBITDA and reduce net debt to achieve top-tier financial stability domestically.”
As the company advances into the future of electrification, SK Innovation aims to solidify its identity as a global energy leader focused on innovation, efficiency, and sustainable financial growth.
