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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Battery separator maker SK IE Technology (SKIET), a subsidiary of SK Innovation, has begun a voluntary retirement program as losses mount amid a slower-than-expected recovery in the electric vehicle (EV) market.
According to investment banking sources on March 15, SKIET recently offered voluntary retirement to employees with three or more years of service, providing one year’s salary as compensation. The move comes as the prolonged EV demand slowdown pressures the company’s profitability. Affiliate SK On also carried out a voluntary retirement program last month.
Founded in 2019 after spinning off from SK Innovation’s materials division, SKIET manufactures lithium-ion battery separators. The company is currently also operating an unpaid leave program for employees with at least two years of service.
The cost-cutting measures follow a string of losses. SKIET reported an operating loss of 75.7 billion won in the fourth quarter of last year, partly due to the suspension of U.S. EV subsidies. Its annual operating loss reached 246.3 billion won, following 291 billion won in losses in 2024.
Industry analysts say the outlook remains uncertain due to U.S. economic uncertainty and aggressive price competition from Chinese manufacturers. Despite Chinese separator makers raising prices by about 30% late last year amid industry restructuring, their products remain cheaper than those of Korean rivals.
SKIET told analysts in a conference call that annual separator sales in 2025 are expected to remain similar to last year’s level of about 378 million square meters. Meanwhile, the commercial operation of SK On’s Tennessee EV battery plant in the United States—a key demand driver—has been delayed from this year to 2028.
The company’s stock has also weakened, falling about 12.4% this year, from 25,050 won at the end of last year to 21,950 won as of March 13.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
