SK Innovation plans to merge with subsidiary SK IE Technology (SKIET), bringing its lithium-ion battery separator business back under the parent company as part of a broader corporate restructuring.
Merger Planned for January 2027
The merger is scheduled to take effect on January 1, 2027, subject to approval by the SK Innovation board of directors and SKIET general meeting, expected on November 24.
SK Innovation to Merge SK On and SK Enmove to Strengthen EV Battery Business
Procedural steps will be completed ahead of the effective date, with new SK Innovation shares issued as part of the transaction scheduled to be listed on January 18, 2027.
Following the merger, SKIET will cease to operate as an independently listed company and its separator operations will be reorganised within SK Innovation.
Battery Separator Business
SKIET specialises in lithium-ion battery separators (LiBS), a critical component used to separate the electrodes within battery cells.
The company was originally established as a wholly owned subsidiary of SK Innovation before being spun off in 2019 and listed in 2021.
SKIET has faced pressure from slower electric vehicle market growth, delayed demand recovery in markets including North America and intense competition from Chinese manufacturers.
Factorial Energy and SK On Partner to Evaluate Solid-State Battery Manufacturing
SK Innovation said bringing the business back into the parent company is expected to strengthen financial stability, reduce business and financial risks and improve operational efficiency.
SKIET supplies separators to SK Innovation subsidiary SK On as well as external customers including LG.
Operational Efficiency and ESS Expansion
The merger is expected to reduce costs associated with duplicated corporate structures and improve efficiency within the separator business.
SK Innovation also plans to combine its research and development capabilities with SKIET’s product development expertise to strengthen the competitiveness of the business.
SK On and Hyundai Begin Battery Cell Production at $5 Billion Georgia Plant
The companies see expansion into separators for energy storage systems (ESS) as an important area for future growth.
“Through this merger, we plan to strengthen our financial stability and streamline our business structure, thereby enhancing the mid- to long-term competitiveness of the separator business,” an SK Innovation representative said.
The representative added that the company aims to use the merger to restore business competitiveness while increasing shareholder value.
