Ioniq Takes Off in the U.S.... SK On Also Benefits from Battery Installations

The formula that electric vehicles sell better as oil prices rise has become a reality.
As soaring oil prices originating from the Middle East shook up the landscape of the U. S. automotive market, Hyundai Motor’s U. S. electric vehicle sales surged by 40% in March alone. Consequently, expectations for improved performance are also heating up for SK On, which supplies batteries for Hyundai’s major electric vehicle models, such as the Ioniq 5 and Ioniq 9. ■ Ioniq 5 & 9 Sales Surge in March According to industry sources on the 27th, Hyundai Motor’s U. S.
electric vehicle sales increased by approximately 40% in March of this year compared to the previous month. The Ioniq 5 (4,425 units) was the best-selling model, increasing by 37% from the previous month (3,234 units), while the Ioniq 9 (905 units) also saw a 79% increase from February (505 units). 4% increase compared to the same period last year (8,610 units). The Ioniq 9 also recorded its highest sales volume since last September (1,075 units). High oil prices are cited as the reason behind the surge in Hyundai Motor's electric vehicle sales in the U. S. last month. Hyundai Motor President Jose Muñoz explained to reporters in Milan, Italy, on the 20th (local time), "U.
S. consumers' criteria for purchasing vehicles are changing," adding, "When fuel costs rise, there is a stronger tendency to seek more economical alternatives. " In fact, international oil prices are on the rise. In March, the average prices of West Texas Intermediate (WTI) and Brent crude reached around $94 and $100 per barrel, respectively, surging by approximately 40–50% compared to the average of January and February ($60–$70 range). Consequently, U. S. gasoline prices have risen significantly. According to the American Automobile Association (AAA) as of the 26th, the average price of regular gasoline in the U.
S. 10 per gallon, a 37% surge compared to before the start of the war with Iran. The U. S. government also believes that a drop in oil prices is unlikely to occur in the short term. As the high oil price environment persists, the transition to electric vehicles (EVs) is expected to accelerate. Market research firm SNE Research forecasted that the recovery in EV demand this year will occur six months earlier than previously projected, one year earlier in 2027, and more than two years earlier from 2028 onwards.
The forecast for this year's global EV penetration rate, presented at 27% last January, was also raised to 29% this month. ■ Signal for a Rebound in SKON Battery Utilization Rates As a result, expectations for SKON to benefit have also grown. Both Hyundai Motor's Ioniq 5 and Ioniq 9 models are equipped with SKON batteries, and these units are produced at the U. S. subsidiary, SK Battery America (SKBA). 7% last year, and the surge in Hyundai Motor's electric vehicle sales in the U. S.
is expected to significantly boost SKBA's utilization rate by 2026. An SK On official stated, "As the economic viability of electric vehicles has been highlighted due to rising oil prices following the war, there is a trend of gradually expanding demand in the U. S. market," adding, "Accordingly, we expect to see a gradual improvement in the utilization rate of our U. S. factories starting from the second half of the year. " Expectations for SK On to benefit are confirmed not only by March sales but also by the overall first quarter figures.
According to Kelley Blue Book, a U. S. automotive evaluation agency, SK On batteries were found to be installed in approximately 93% of the 12,662 Hyundai electric vehicles sold in the U. S. during the first quarter of this year. This represents an increase of over 20 percentage points compared to last year (67%). By model, the Ioniq 5 accounted for the highest share at approximately 77%, while the Ioniq 9 accounted for 16%.
The prominent sales of Hyundai Motor's electric vehicles in the domestic market also raise expectations for benefits for SK On. 6% of the total. While 100,315 units of the Ioniq 5 were sold, 94,411 units of the Porter EV, equipped with SK On's batteries, also sold, driving the upward trend. An industry official stated, "If Hyundai Motor's electric vehicle sales remain robust in both the U. S. and domestic markets, it will have a significant positive impact on SK On. " The official added, "As the high oil price environment persists, the economic viability of electric vehicles will become more prominent, and expectations for expanded sales by Hyundai Motor and improved performance by SK On are expected to grow in tandem.
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eastcold@fnnews.com Kim Dong-chan Reporter