SK On has secured funds potentially earmarked for next-generation battery research and development by divesting its entire stake in a Singapore tank terminal, an investment held for 21 years.
According to SK On's audit report released on the 15th, the company sold its entire 15% stake in Singapore's Horizon Terminal in January. The sale price is estimated at 15 billion to 20 billion won ($10.4 million to $13.9 million).
An SK Innovation official said, "We sold the stake as part of our portfolio rebalancing plan aimed at strengthening our core competitiveness," adding, "We cannot disclose the initial investment cost, sale amount, or the buyer."
Horizon Terminal is an oil logistics facility located on Jurong Island, Singapore's petrochemical hub. The facility has tanks capable of storing 5.3 million barrels of petroleum products along with loading and unloading equipment.
SK Corp. originally invested in Horizon Terminal to strengthen oil trading activities in the Asia-Pacific region. The stake passed through SK Energy after a 2007 spinoff, then to SK Innovation in 2011, before transferring to SK Trading International in 2014. SK On acquired the stake in 2024 following its merger with SK Trading International.
Industry observers believe the sale proceeds are likely to be channeled into next-generation battery R&D at SK On. The company is currently intensifying research on next-generation all-solid-state batteries and lithium iron phosphate (LFP) batteries for energy storage systems (ESS).