Korean battery makers help drive Bezos’ effort to challenge Tesla’s dominance in EV market
SK On picked as supplier for Slate
Korean battery makers are playing a key role in Amazon founder Jeff Bezos’ efforts to challenge Tesla CEO Elon Musk in the electric vehicle (EV) market.
Slate, an EV startup backed by Bezos and founded in Mississippi in 2022, chose SK On to supply 20 gigawatt-hours of U.S.-made batteries for its two-seat pickup trucks from 2026 to 2031. The deal is valued at approximately $2.8 billion.
Though Slate’s name is seen as an anagram of Tesla, its new pickup stands in stark contrast to Tesla’s Cybertruck.
Slate plans to price its pickup under $30,000 by simplifying manufacturing and design, while Tesla’s Cybertruck, by comparison, is priced up to $100,000.
Industry officials attribute Slate’s choice of SK On to the Korean company’s position as the only non-Chinese battery maker that does not supply Tesla, even though it manufactures its batteries in the United States.
SK On began mass production in Georgia in 2022, following its 2019 investment to build factories there.
The Korean firm also anticipates the start of standard operations at its three U.S. plants by the end of next year, aiming for their output to account for 50 percent of its global production capacity.
Slate CEO Chris Barman said,
SK On’s innovative approach and partnership has allowed us to meet our target of delivering a radically affordable vehicle,
SK On CEO Lee Seok-hee noted that the partnership with Slate demonstrates how his company’s U.S. manufacturing capabilities are enabling more effective and flexible support for innovative customers.
He said,
North America is a key market for us and we are committed to delivering reliable, high-quality batteries that support our partners in making EVs more accessible, while reducing emissions and advancing sustainable mobility,
Rivian, another U.S. EV manufacturer backed by Bezos, also opted for batteries from Korean companies.
While Samsung SDI supplied batteries for Rivian’s R1T long-range electric pickup truck, LG Energy Solution (LGES) provided products for the U.S. carmaker’s R1S all-electric SUV. However, LGES is also a supplier for Tesla.
Considering recent controversies surrounding Musk’s political moves, the Bezos-backed companies are expected to expand their presence in the market.
Tesla has been facing a global boycott as Musk was appointed to lead the U.S. Department of Government Efficiency due to his support for U.S. President Donald Trump.
In the first quarter of this year, the carmaker sold approximately 128,000 vehicles, marking a 9 percent year-on-year decline. Its U.S. market share also fell from 53 percent to 43 percent.
Additionally, the company reportedly delayed the U.S. launch of its affordable Model Y by several months.
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Korean battery makers help drive Bezos’ effort to challenge Tesla’s dominance in EV market, source
