SKIET is a highly specialised company that produces lithium-ion battery separators (LiBS), a critical component of battery cells. Originally a wholly owned subsidiary of South Korean conglomerate SK Innovation, the company was spun off in 2019 and listed on the stock exchange in 2021. However, SKIET has faced significant challenges amid slower electric vehicle market growth, delayed demand recovery in key markets such as North America and intense price competition from Chinese manufacturers.
SK Innovation says bringing SKIET back under its corporate umbrella and ending its independent listed status will strengthen financial stability, mitigate business and financial risks and improve operational efficiency. The merger is also intended to strengthen the separator business over the medium to long term and increase shareholder value. SKIET currently supplies separators to SK Innovation subsidiary SK On as well as external customers such as LG.
The merger is expected to be approved on 24 November by the SK Innovation board of directors and the SKIET general meeting, with the relevant procedural steps to be completed by the merger’s effective date of 1 January 2027. The new shares of SK Innovation issued as part of the merger will be listed on the stock exchange on 18 January 2027.
