Details of $2.8B battery deal between Slate Auto and SK On

[jwocky]

This is the most detail I've seen so far on the battery deal between Slate Auto and SK.

SK On seals $2.8 bn battery deal with Bezos-backed US EV start-up Slate

Slate Auto CEO Chris Barman (left) and SK On CEO Lee Seok-hee pose for a photo at a Slate electric pickup truck unveiling event in Long Beach, California


SK On Co., the battery subsidiary of South Korea’s energy conglomerate SK Group, has signed a supply agreement worth an estimated 4 trillion won ($2.8 billion) with US electric vehicle start-up Slate Auto, which has drawn attention after it was known to have secured Amazon founder Jeff Bezos among its backers.

The agreement marks another significant milestone for SK On, coming just weeks after the battery maker signed a 15 trillion won deal with Japanese carmaker Nissan Motor Co.

The latest contract with Slate reinforces SK On’s aggressive push into the US market, positioning itself as a key supplier not only to legacy automakers but also to next-generation EV players.

Under the deal announced on Friday, SK On will supply 20 gigawatt-hours (GWh) of battery capacity to Slate between 2026 and 2031 – enough to power around 300,000 midsize electric vehicles.

Though financial terms were undisclosed, industry officials estimate the deal’s value at close to 4 trillion won, citing recent battery prices.

The two companies have also agreed to explore scaling up supply volumes should Slate’s vehicle production increase.

SLATE TRUCK BATTERIES WILL BE MADE AT SK’S US PLANT

Founded in 2022 in Michigan, Slate plans to launch a compact two-door electric pickup truck next year priced under $30,000 – a segment largely overlooked by incumbent EV makers.

To keep costs low, Slate has streamlined the vehicle’s manufacturing process and design, offering just a single exterior color. Buyers can then personalize their vehicle using a range of modular DIY kits, including options to upgrade the trim, install a roof rack or convert the pickup into a five-seater SUV.

The upcoming electric pickup will be equipped with SK On’s high-nickel NCM (nickel-cobalt-manganese) battery cells, known for their superior energy density and safety – attributes considered crucial in the long-range US EV market.

SK On is the battery unit of energy conglomerate SK Group


The batteries to be supplied to Slate will be manufactured at SK On’s US production facilities.

SK On, an affiliate of Korea’s top energy company SK Innovation Co., began investing in US production capacity in 2019 and started mass production in 2022.

It now operates one fully operational plant in Georgia and is building four additional facilities in Georgia, Kentucky and Tennessee in partnership with automakers through joint ventures.

By the end of 2026, half of SK On’s global production capacity is expected to be based in the US, with US output likely exceeding 180 GWh annually once all plants reach full capacity.

SK On's prismatic EV battery


STRATEGIC SHIFT

The deal with Slate marks a strategic shift for SK On as sales of its batteries expand beyond premium electric vehicles to more affordable models – a move that could help accelerate EV adoption among mass-market consumers.

At a product unveiling event in Long Beach, California, on Thursday, Slate Chief Executive Chris Barman described the start-up as “more than a car company,” calling it “a flexible truck platform built for customization.”

SK On CEO Lee Seok-hee, who attended the launch, said the partnership reaffirmed “trust in SK’s technology and manufacturing capabilities in the US.”

“The US is a core strategic market for us,” Lee said. “We’re committed to delivering high-quality, locally made batteries that meet the needs of a rapidly evolving EV landscape.”

https://www.kedglobal.com/batteries/newsView/ked202504250003

 

[cvollers]

That works out to roughly $9.3K per car for battery cost. 37% of price at $25K.

 

[AZFox]

The article is good news. Thanks for sharing it here.

Founded in 2022 in Michigan, Slate plans to launch a compact two-door electric pickup truck next year priced under $30,000 – a segment largely overlooked by incumbent EV makers.

No US consumer has bought a compact pickup in years. I wonder why. Could it be that none has been available, perhaps?

 

[1yeliab_sufur1]

If it’s enough to power 300,000 for 5 years that’s about 60,000 a year which is interesting since slate auto wants to produce 150,000 a year so maybe there lowering production a bit instead of 150,000 it’s 60,000 but I guess the slate isn’t mid size right ? Hmmm

 

[1yeliab_sufur1]

And these new prismatic batteries seem far more interesting then what everyone is talking about

 

[cvollers]

That works out to roughly $9.3K per car for battery cost. 37% of price at $25K.

LFP would potentially cost less per battery, although tariffs could change that. That said, LFP would most likely disqualify the federal incentive.

 

[Karl Childers]

This thread is interesting. I had no idea what those battery packs cost manufacturers.

 

[GoinPostall]

LFP would potentially cost less per battery, although tariffs could change that. That said, LFP would most likely disqualify the federal incentive.

I don't know a whole lot about the whole federal incentive, but why would the LFP batteries disqualify it? I've never owned any EV, so a Slate would be my first.

 

[The Weatherman]

I don't know a whole lot about the whole federal incentive, but why would the LFP batteries disqualify it? I've never owned any EV, so a Slate would be my first.

The current incentives limits the battery chemistry to materials that can be sourced here. There was a % factor if I recall correctly.

I don’t think that is going to be an issue by the time these trucks are rolling off the line. It is highly likely they will be gone early next year if not late this year.

The tax credit is nice, but it was not the deciding factor in my decision to go fully EV two years ago. I received like $890.00 on my 79k Lightning and the KIA EV6 my wife drives did not qualify.

 

[cvollers]

I don't know a whole lot about the whole federal incentive, but why would the LFP batteries disqualify it? I've never owned any EV, so a Slate would be my first.

Most LFP batteries come from China or somewhere other than domestically produced here. The federal incentive is directly related to producing/sourcing the key vehicle components here.

 

[cvollers]

This thread is interesting. I had no idea what those battery packs cost manufacturers.

I don't believe there is a single component in any ICE vehicle that is 37% of the price of the vehicle. Which kind of makes me wonder, what is driving the pricing for ICE vehicles? Labor? Paint? Drivetrain? Metal stamping? Marketing/overhead? Greed?

Or is it all of the above.

 

[Karl Childers]

I don't believe there is a single component in any ICE vehicle that is 37% of the price of the vehicle. Which kind of makes me wonder, what is driving the pricing for ICE vehicles? Labor? Paint? Drivetrain? Metal stamping? Marketing/overhead? Greed?

Or is it all of the above.

We have a Maverick hybrid, I would think the engine, transmission, and hybrid battery pack would probably be pretty expensive. A refurbished battery pack is about 2.5 to 3k.

 

[AZFox]

I don't believe there is a single component in any ICE vehicle that is 37% of the price of the vehicle. Which kind of makes me wonder, what is driving the pricing for ICE vehicles? Labor? Paint? Drivetrain? Metal stamping? Marketing/overhead? Greed?

Or is it all of the above.

Add electronics to your list.

AI query:

What percentage of the cost of a new car is electronics?​

Response:

According to various analyses, electronics account for approximately 40 percent of the cost of a new car. This significant increase from 18 percent in 2000 highlights the growing importance of electronic systems in modern vehicles.​

 

[evtruth]

This is the most detail I've seen so far on the battery deal between Slate Auto and SK.

SK On seals $2.8 bn battery deal with Bezos-backed US EV start-up Slate

Slate Auto CEO Chris Barman (left) and SK On CEO Lee Seok-hee pose for a photo at a Slate electric pickup truck unveiling event in Long Beach, California


SK On Co., the battery subsidiary of South Korea’s energy conglomerate SK Group, has signed a supply agreement worth an estimated 4 trillion won ($2.8 billion) with US electric vehicle start-up Slate Auto, which has drawn attention after it was known to have secured Amazon founder Jeff Bezos among its backers.

The agreement marks another significant milestone for SK On, coming just weeks after the battery maker signed a 15 trillion won deal with Japanese carmaker Nissan Motor Co.

The latest contract with Slate reinforces SK On’s aggressive push into the US market, positioning itself as a key supplier not only to legacy automakers but also to next-generation EV players.

Under the deal announced on Friday, SK On will supply 20 gigawatt-hours (GWh) of battery capacity to Slate between 2026 and 2031 – enough to power around 300,000 midsize electric vehicles.

Though financial terms were undisclosed, industry officials estimate the deal’s value at close to 4 trillion won, citing recent battery prices.

The two companies have also agreed to explore scaling up supply volumes should Slate’s vehicle production increase.

SLATE TRUCK BATTERIES WILL BE MADE AT SK’S US PLANT

Founded in 2022 in Michigan, Slate plans to launch a compact two-door electric pickup truck next year priced under $30,000 – a segment largely overlooked by incumbent EV makers.

To keep costs low, Slate has streamlined the vehicle’s manufacturing process and design, offering just a single exterior color. Buyers can then personalize their vehicle using a range of modular DIY kits, including options to upgrade the trim, install a roof rack or convert the pickup into a five-seater SUV.

The upcoming electric pickup will be equipped with SK On’s high-nickel NCM (nickel-cobalt-manganese) battery cells, known for their superior energy density and safety – attributes considered crucial in the long-range US EV market.

SK On is the battery unit of energy conglomerate SK Group


The batteries to be supplied to Slate will be manufactured at SK On’s US production facilities.

SK On, an affiliate of Korea’s top energy company SK Innovation Co., began investing in US production capacity in 2019 and started mass production in 2022.

It now operates one fully operational plant in Georgia and is building four additional facilities in Georgia, Kentucky and Tennessee in partnership with automakers through joint ventures.

By the end of 2026, half of SK On’s global production capacity is expected to be based in the US, with US output likely exceeding 180 GWh annually once all plants reach full capacity.

SK On's prismatic EV battery


STRATEGIC SHIFT

The deal with Slate marks a strategic shift for SK On as sales of its batteries expand beyond premium electric vehicles to more affordable models – a move that could help accelerate EV adoption among mass-market consumers.

At a product unveiling event in Long Beach, California, on Thursday, Slate Chief Executive Chris Barman described the start-up as “more than a car company,” calling it “a flexible truck platform built for customization.”

SK On CEO Lee Seok-hee, who attended the launch, said the partnership reaffirmed “trust in SK’s technology and manufacturing capabilities in the US.”

“The US is a core strategic market for us,” Lee said. “We’re committed to delivering high-quality, locally made batteries that meet the needs of a rapidly evolving EV landscape.”

https://www.kedglobal.com/batteries/newsView/ked202504250003

Interesting. The article says that the "battery" will be made in Georgia, but the Slate employee I talked to when I took these pics said the "battery cells" will be made there. Maybe just a detail left out?

 

[evtruth]

That works out to roughly $9.3K per car for battery cost. 37% of price at $25K.

$9,300 for a 52.7kWh battery would be ~$176/kWh of storage. That's not much worse than Tesla's ~$150/kWh, especially considering the production run is so much smaller.