SK ie technology Co. (SKIET), a lithium-ion battery separator (LiBS) making company, has returned to profitability in the second quarter of this year helped by growingdemandforelectricvehicles.

The company had faced challenging times since its initial public offering in October 2021, enduring six consecutive quarters of losses until the first quarter of this year. However, on Wednesday, the company reported revenue of 151.8 billion won ($119 million) and an operating profit of 900 million won in the second quarter, with an announcement of securing a blockbuster contract.

The figures show significant improvement, with a 9.3 percent increase in revenue and a 7.9 percent increase in operating profit compared to the same period last year. As a subsidiary of SK innovation Co., SKIET specializes in producing lithium-ion battery separators (LiBS). Following its spin-off from SK innovation and listing on the stock market in May 2021, SKIET faced challenges initially, with its stock price declining by over 26 percent on the first day of trading.

However, there are optimistic expectations that SKIET can maintain its profitability throughout this year. Despite facing a loss of 2.7 billion won in the first half of the year, the company is determined to expand its operations in North America. As battery separators are classified as components under the U.S. Inflation Reduction Act, making it essential for battery part companies to establish a presence in North America, SKIET is mulling an establishment of production bases in countries like the U.S. and Canada to tap into this market.

In a separate announcement, SKIET has secured a substantial contract from SK on Co., a pure-play battery maker under the same umbrella of SK innovation. The contract spans five years and involves the supply of battery separators. “SK on has been responsible for more than half of SKIET’s sales, and considering SK on’s growing battery shipments, the value of this supply contract is projected to be at least 1.5 trillion won,” said an unnamed source from the battery industry.

By Song Min-geun and Han Yubin

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