Battery unit could reach breakeven in Q4 executive
Shares rise as much 5 on change in guidance
Sees limited impact on battery unit from Ford MotorCATL deal

SEOUL, July 29 Reuters South Korean energy group SK Innovation Co Ltd said on Friday its battery unit is on target to break even in the fourth quarter thanks to improving market conditions, reversing its previous guidance and sending its shares up as much as 5.

The company had said in April that the turnaround of its lossmaking battery unit SK On, which supplies Ford Motor Co and Hyundai Motor Co among others, could take longer than expected due to surging raw material prices and a prolonged global chip shortage. 

As we enter the second half of the year, we expect overall business environments will start to turn positive, compared to the first half of the year, SK On Head of Battery Strategy and Planning Office Sunmi Jean said during an earnings call.

In particular, we expect stable rampup processes of our newly operating facilities that came online in the beginning of 2022.

Jean said efforts to negotiate terms with auto customers to pass on rising raw material costs would also help the battery unit39;s profitability, putting it on track to break even by the end of the year.

SK On, which was split off last year but remains wholly owned by SK Innovation, accounted for about 6.5 of the parent company39;s revenue in the second quarter.

The worst of the global chip shortage seems to be behind us for now and…