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Transportation Power

Battery Maker SK On Declares 'Emergency' As EV Sales Disappoint (archive.md) 151

"A leading South Korean producer of electric vehicle batteries has declared itself in crisis," reports the Financial Times, "as its customers struggle with disappointing EV sales in Europe and the US." SK On, the world's fourth-largest EV battery maker behind Chinese giants CATL and BYD and South Korean rival LG Energy Solution, has recorded losses for 10 consecutive quarters since being spun off by its parent company in 2021. Its net debt has increased more than fivefold, from Won2.9tn ($2.1bn) to Won15.6tn over the same period, as western EV sales have fallen far short of its expectations. With losses snowballing, chief executive Lee Seok-hee announced a series of cost-cutting and working practice measures last Monday, describing them as a state of "emergency management".

"We have our back against the wall," Lee wrote in a letter to employees. "We should all pull together."

[...] Tim Bush, a Seoul-based battery analyst at UBS, said the South Korean battery makers had been "badly let down" by US car manufacturers, which he said had failed to produce EVs sufficiently attractive to mass market consumers to meet their own bullish sales projections. He noted that until as recently as last year, General Motors was forecasting it would sell 1 million EVs in 2025. It sold just 21,930 in the second quarter of this year.

Bush tells the Financial Times that "the automakers didn't invest enough in producing high-quality affordable EVs." But he also tells the newspaper that a transition to EVs is still "inevitable".

"As long as the wider SK Group continues to see SK On as a trophy asset and gives it the support it needs to weather the present storm, then its long-term future is likely to be assured."

Thanks to long-time Slashdot reader schwit1 for sharing the article.
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Battery Maker SK On Declares 'Emergency' As EV Sales Disappoint

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  • by Canberra1 ( 3475749 ) on Sunday July 14, 2024 @03:22AM (#64624153)
    Australia decided to 'get into the battery business' because it knew it could never match subsidies of other countries. Now before their hairbrained scheme takes off, SK Korea in trouble. If Korea had any brains, they would make low margin solar battery packs for rooftop systems and export to Australia just to keep the production line humming. Due to planned negative solar export rates, the size should be 6-12 hours for a 14kW system.
    • Re: (Score:2, Insightful)

      I'm sure they had no idea some people use batteries for things other than EVs. Good tip!

      It never fails to amaze me how much great "it's so easy just do X!" advice slashdot provides which is not slavishly watched by captains of industry and national leaders. We don't even charge for this great advice!

      • I put Battleborn batteries (made in Nevada) in my RV solar install 4 x 100amh LiOn batteries. And 6 x 200 watt solar panels and 3000 watt inverter. Powers whole coach, no generator needed.
      • 100%. I have a rare, incurable, degenerative joint disease that flares up and causes me a great deal of pain... I have had this since 1987, it causes me so much pain that I can't walk or sleep... And soooooo many people say stupid shit to my like, "Have you tried Ibuprofen?" it is simply amazing.
    • That would be "harebrained". What would "hairbrained" even mean?

    • Just curious, who needs 14kW, and why?
      • I have a 23.26 kW system. I live in a California mansion with two EVs, two central ACs, sauna, hot tub, all electric appliances. It produces about 120% of our electricity usage on an annual basis, which cuts 100% of the bill with the current tenough. That's about 30 Mwh production for 25 Mwh consumption.

        Our 2 furnaces and 2 water heaters are still gas, though. As is the outdoor grill. And the 4 fireplaces. We have never used the fireplace since we bought the home 14 years ago.

      • by jezwel ( 2451108 )

        Just curious, who needs 14kW, and why?

        My solar meter shows the last couple of winter days down under as 50-53kWh of total usage, and 15-20kWh of that produced via solar - the rest is from the grid. Sent to the grid was about 20kWh per day.

        With battery storage we could be filling that for use overnight, and by having a battery to soak up solar we wouldn't be curtailing generation as much - we can only send a max of 5kW to the grid.

        In answer to your question, anyone with a high efficiency house is a good candidate. Our house was built in 1910

      • my house has 200 amp service, so how many KW's do I need? And, maybe, just maybe the person who needs 14KW is selling it back to the grid?
  • Bait (Score:5, Insightful)

    by locater16 ( 2326718 ) on Sunday July 14, 2024 @03:35AM (#64624159)
    Crisis, headlines, CLICK NOW! EV sales continue to go up, but not as fast as last year which means CRISIS CLICK NOW CLICK DO IT!!!11
    • Re:Bait (Score:5, Insightful)

      by taustin ( 171655 ) on Sunday July 14, 2024 @03:52AM (#64624167) Homepage Journal

      If they built up their capacity to handle GM selling a million EVs next year, and they've only sold 22,000 this year, I'd say they should, perhaps, be concerned. And so should all the employees they're about to lay off.

      • by leonbev ( 111395 )

        I don't think that any sane person at GM really thought that they were going to sell a million EVs with their present product offerings. That kind of market for $100,000 luxury SUV's like the Hummer EV and the upcoming Escalade IQ just isn't there.

        GM just doesn't seem to be competing in the affordable EV space like BYD is right now. Not that you can actually get a BYD vehicle in the US, but that's another problem entirely.

      • ... and they've only sold 22,000 this year

        They have sold almost 22,000 in the second quarter. Extrapolating to the full year means they are on course to sell close to 100.000 units.

        This is still only a tenth of what the initial plan foresaw for next year, though.

  • by citizenr ( 871508 ) on Sunday July 14, 2024 @03:46AM (#64624165) Homepage

    Im sure it has nothing to do with recall of stolen defective technology.

    SK stole EV battery technology from LG https://www.reuters.com/techno... [reuters.com]

    unfortunately for SK it was defective by design and cost LG f-ton of money to recall https://www.reuters.com/busine... [reuters.com]

    and now SK is on the hook https://www.just-auto.com/news... [just-auto.com]

    • by GooberPyle ( 9014301 ) on Sunday July 14, 2024 @05:58AM (#64624289)
      SK On and LG both make NMC batteries that are inherently expensive. They have recently decided to collaborate along with Hyundai/Kia to make LFP batteries. CATL and BYD are currently making second generation LMFP batteries. They are safe and affordable, but are not available in the USA. This is why EVs are getting negative press in the USA and also why SK is in trouble. You can go to Mexico right now and get an affordable BYD car with LFP batteries, but there is no service support in the USA. Politicians are working on keeping affordable LMFP batteries out of the USA because they are made in China. It's all about the battery chemistry which is rarely covered in popular commercial media.
      • CATL and BYD are currently making second generation LMFP batteries

        Are they? So far I've only heard plans to sell them maybe starting this year, but haven't heard of anything using them alredy. Also, are claims of safety and energy density verified independently?

        I know someone who bought a Chinese electric cart from BYD (Tank or somesuch, late in 2022). The sales pitch was about a huge range on top of other niceties. In practice, the car delivered nothing close to the advertised range, has already rusted and undergone several long service spells. For a new car that's quit

  • by bubblyceiling ( 7940768 ) on Sunday July 14, 2024 @03:54AM (#64624169)
    It should have been obvious since day 1, that no one is going to buy the luxury $80,000 EVs in the middle of a financial crisis
    • that no one is going to buy the luxury $80,000 EVs in the middle of a financial crisis

      People buying $80k EVs aren't having a financial crisis. They probably don't even realise it's happening. The financial crisis is something that affects poor people.

    • It should have been obvious since day 1, that no one is going to buy the luxury $80,000 EVs in the middle of a financial crisis

      No. It should have been painfully obvious that only 1% of your customers can afford a fucking $80,000 car, no matter what’s powering it, regardless of a financial crisis.

    • People can't afford EV's that cost Double what overpriced Gasoline fueled cars cost. Cars are becoming unaffordable PERIOD. EV or Gas. Since EV's are more expensive AND there are the charging issues, that segment is suffering the most. Everyone with half a brain predicated this was coming.

  • by Qbertino ( 265505 ) <moiraNO@SPAMmodparlor.com> on Sunday July 14, 2024 @05:09AM (#64624239)

    We're seeing transition to renewable energy going way faster than anyone expected. However, it's not seamlesss nor should it be expected to be. We have 100+ years of Oil and fossil fuels in general that ran our life. You don't just swap that out in one go without hitting bumps or snags.

    It is very likely that 2 years from now they will have problems keeping up with demand. Perhaps even earlier. This is the exact situation where government subsidies actually could make sense, if only to buffer the time until demand for batteries kicks in.

    • exactly. https://www.vox.com/2015/10/12... [vox.com] has a graph of just how crazy low 10 yr projections were compared to what we achieved when that 10 yrs happened.

      In 2010 it was projected to have 180 GW of installed solar PV capacity by 2024; that target was met in January 2015.

      In 2015, installed PV capacity exceeded 2010 projections for 2015 by threefold.

  • EV...can't afford one plus I don't see any positives for "myself" in buying one !
    • FWIW, I got a pretty nice Toyota plugin hybrid recently for the cost of a comparable "EV". It covers more than 80% of my driving needs on battery, and I have a real car for the rare occasion when I need one.

      Not sure if EVs will ever get where the hybrids already are.

      • The problem is that hybrids use very small batteries. They do not help the batt factories.
        • Well, I'm not in the business of helping the battery factories. On the other hand, if the price is right someday I may buy a battery to store that extra solar power which the utility doesn't need.

          • In TX there's a company that will install a home battery for your for basically free. You then buy power from them and they use the batteries to make money selling to the grid as needed as well. You get 100% up time thanks to the battery for all but the worst grid fall overs. https://electrek.co/2024/05/09... [electrek.co]

            For just $2000 upfront. For a 20 kwh battery!

            Given the instability of the Tx grid, they basically print money, and you get cheap cheap and STABLE power.

            • Thanks, this is interesting indeed, although it appears that it isn't what I imagine I'm looking for:

              A Base Power spokesperson told Electrek that it purchases 20 kWh white-label batteries that it owns, operates, and maintains for its customers [...] and solar isn’t required.

              My imagination is, of course, limited by past experience of companies that rent equipment as a part of a broader service contract. They often put limits on how their stuff integrates with what people already have, and moreover, they tend to disintegrate and disappear, leaving their gear inoperable and worthless.

              But it is an interesting example nevertheless and it is not set in stone that all service vendors

        • PHEVs use "moderate" battery sizes. If we went 100% PHEV, the battery factories would be fine, it's be comparable to like 10-20% of vehicles sold being EV.

          I would be behind a system where we transitioned like 90% of people to PHEV before going to full EV.

          • Yep. Only better thing would have been doing it 20 years ago.

            But no time like the present to start the journey. We have 2 14 yr old cars and the next will probably be a used EV and a PHEV for trips.

        • Actually they do. Battery manufacturers make cells. Cells are then combined into whatever size battery is being ordered.

          Lots of small things mean a larger potential pool of buyers, vs a small pool of people able to buy a few very expensive things.

          The problem isn't the battery size, it's the lack of gov't push towards PHEVs 20 years ago. Then we'd have given people experience with the use of EVs without range anxiety. And of course, economies of scale coming down so things would be cheaper now.

          But no ti

  • Just speaking for myself, since I moved out of the city (Culver City, CA) and started working from home, my 'need' for a daily driver car has gone to zero. That's what I see a typical electric car as being the best for; a predictable and regular commute to the workplace. I have no proof, but I bet I'm not alone. My sister and sister-in-law now (since the plague panic of 2020) have most groceries and other things delivered. Don't need to now but once the convenience was experienced it's hard to stop. They ho

    • I concur. WFH lifestyle changes have led us to getting rid of a car. During COVID I only drove it 3 times and all three times it had a flat battery from lack of use.

  • ...finally built a good EV...

    Al we have now is crap. Absolute garbage. It's all techno-gimmicked to the teeth but usability is down the drain. All the creature comforts you never use but they drive like crap. They don't drive like crap but you can't listen to music properly and forget about setting turn signals. They have propper buttins but the seats are uncomfortable and unsupporting and the ride quality sucks.

    Just about all of them have range out the wazoo because "muh range anxiety" but in few of them y

    • by hdyoung ( 5182939 ) on Sunday July 14, 2024 @09:46AM (#64624567)
      Have you actually driven in a Tesla y or 3? Are they perfect? No? Are they perfectly usable and serviceable small/medium cars with halfway decent looks ? Um, hell yeah. And yeah there are problematic ones but there are also millions of them on the road already, most of them quietly racking up the miles with owners that are pretty typical upper-middle-class schmoes, not influencers looking to grab clicks by hyperventilating on TikTok about the imperfections. This forum loves to hate Tesla, but they are well on their way to becoming the next Toyota, if they dont screw it up. The 3 and y are solid cars that happen to be EVs. The cybertruck? Ok, the less said about that, the better.
  • Americans don't want cup-holders or fuel economy or handling! They want a Shamu with fake velvet quilted bench seats.
    In my whole existence, never, never has the American car companies been first or even any where near best in appealing to the to current tastes of consumers. I'd buy an EV, but again my selection is limited in the USA for reasons in the same vein and spirit as to why I also cannot buy a small car-like pick-up.

    • Americans don't want cup-holders

      I do...it's a pain in the ass to try to hold your beer between your legs and trying to shift at the same time.....

  • >"which he said had failed to produce EVs sufficiently attractive to mass market consumers to meet their own bullish sales projections"

    Bingo.
    I would buy an EV right now. But I want a similar car/sedan to replace my Japanese luxury sport sedan. Not a truck, not an SUV. One that is "normal" looking with "normal" controls/dash and "normal" size with a "normal" price. Still waiting....

    • by flink ( 18449 )

      I have the IONIQ 6 and it's a pretty nice sedan. I guess its Korean though. I don't know if I would call it luxury, but it's the nicest car I've ever owned.

  • EV batteries (Score:2, Interesting)

    by RitchCraft ( 6454710 )

    In my opinion EVs need battery packs that can be swapped instead of recharged in place. You pull into a station and get a complete battery swap. Battery packs that have been removed can then be inspected, diagnosed, and recharged for next use when everything checks out. Those packs that need maintenance can then be serviced easily while outside of a vehicle. This would require automakers to come up with universal standards however, which probably couldn't happen without governments intervening unfortunately

    • by bazorg ( 911295 )

      Nio cars do that. Looks like a good idea but adds complexity and the need for a " retail presence" so they are not targeting the low end of the market unlike BYD and a few others. BYD is winning.

    • So you say but EV adoption is fine most places without that.

      Most prime charge overnight and very rarely visit the equivalent of a gas station.

      Swapping our great for a cannonball run, but not many people do that. Fast charging takes as long as the break you ought to be taking anyway.

      • Looking at the big picture it allows the EV manufacturers to get out of the battery business. Current gas stations can over time be converted to battery swap stations, taking just a few minutes to swap while you grab a coffee or visit the bathroom just like you would at a gas station today. The station infrastructure is already in place, all that is needed is a battery industry to utilize them like oil companies do today. Battery repair, recycling, maintenance, and recharging all handled at the local statio

        • Looking at the big picture it allows the EV manufacturers to get out of the battery business.

          They're only half in. They assemble cells into batteries and may opt to buy or license third party control and charging hardware.

          Most of what you're saying isn't wrong per-se, but I don't think it matter as as much. Degredation has been oversold somewhat. In practice it isn't as bad as people assumed and the newer generations are better than the older ones.

          In terms of nipping into a gas station: that's just a chore

    • No thanks. The best thing about an EV is not having to go to a "station". Ever. Okay I've been to one once in the past year, but only because we were driving internationally, and the car still filled up faster than I could drink my coffee (I'm not one of those pigs who eats / drinks in their car).

      But with the standard thing you've hit a bit of a technological road block. Having a standard for this would actively hamper very real development in what is still very much a rapidly changing technology. Pull into

  • EV sales are expensive and their most expensive part is the battery, do we wonder why their sales are struggling?

  • An electric car makes total sense for me. I take maybe one trip per year where I'd need to charge on the road and everything else is just short jaunts for errands. However, how to charge? I live in Seattle and have a garage. That garage doesn't have a 220 outlet anywhere. My service panel, 200 amps, is 100% full. So, to get 220 in the garage I'm going to need to update my service and get 220 out to the garage through a finished basement. I figure 15-20k for that. Do I need TWO 220v outlets out there? Would

    • Will the electrical code allow you to piggy-back on an existing 220V circuit for your clothes dryer or air conditioning?

      I'm just thinking you are unlikely to be drying a load of laundry or running the A/C after midnight.

      • by flink ( 18449 )

        Will the electrical code allow you to piggy-back on an existing 220V circuit for your clothes dryer or air conditioning?

        I'm just thinking you are unlikely to be drying a load of laundry or running the A/C after midnight.

        A panel can be "full" as in all its breaker slots are occupied without exceeding the max load factor for your service. You'd have to do a load calculation to see if you can add a device that pulls 40/60/80A continuous to your household. If you can, then you can add a sub-panel.

        Per section 230.67 of the 2020 NEC you can use a load shedding device to split a circuit between multiple high draw devices. For example you can hang an electric dryer and an EV charger off a single 50A circuit as long as there was

    • by flink ( 18449 )

      I would probably just run an 80A sub-panel out to the garage and then do the EV run(s) from there.

      You can install many L2 chargers outside, so I don't know why these people in you neighborhood are running cables all over the place. You just do a permanent install rather than a a 14-50 outlet. This is what I've done. I just have it mounted to my house next to my driveway. This is safer as well as if you don't install a really high quality outlet that can handle pulling max current for long periods, it ca

  • One of the pundits in the field pointed out that every single car manufacturer out there is having a boom in EV sales except Tesla. The problem is Tesla is creating so hard they're taking the entire market with them.

    What's more we have market research showing that a good chunk of that drop in sales is because of their CEOs behavior on x.com. The sort of person who has the kind of money needed to blow on a Tesla and isn't swayed by a fossil fuel industry's mouthpieces apparently doesn't like it went over
  • Maybe the reason they are in trouble is because they aren't up to speed/quality/price as their larger competitors? So why would a car manufacturer buy their batteries when there are better and cheaper ones on the market?.

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