SK On wins Ford's Q1 Award, earning top-tier quality certification

SK On's factory in Hungary has earned recognition from global automaker Ford for its manufacturing and quality capabilities.

SK On said Wednesday that it received Ford's Q1 Award at a ceremony held Tuesday (local time) at its Iváncsa factory in Hungary. Kim Sung-sik, head of SK On's European operations, attended the event and accepted the certification plaque from Ford representatives.

The Ford Q1 Award is the automaker's highest quality certification, given to parts and raw materials suppliers after a comprehensive assessment of production technology, product quality, quality improvement efforts, and manufacturing and quality management systems.

The "Q1" designation reflects Ford's management philosophy that "Quality is Job 1."

The Iváncsa factory has focused on stabilizing production and strengthening quality competitiveness since it began mass production in the second quarter of 2024. By earning the Q1 certification just two years after the factory began operations, SK On has demonstrated that it meets the stringent manufacturing and quality standards of a global automaker.

SK On underwent Ford's rigorous Q1 evaluation process from late last year through the first half of this year. During the assessment, Ford gave high marks to SK On for preventing the delivery of defective products through an advanced quality management system and for proactively identifying and addressing potential quality risks.

The Iváncsa plant is SK On's third battery production site in Hungary, following its first and second factories in Komárom. Construction began in the third quarter of 2021, commercial operations launched in the second quarter of 2024, and the facility has an annual production capacity of 30 gigawatt-hours.

The factory has also established itself as a leading presence in the local community. In November 2024, the city of Iváncsa named a roughly 1.8-kilometer stretch of road — running from the entrance of the Iváncsa industrial complex to the factory's main gate — "SK Road," in recognition of the plant's contribution to the local economy and industry.

Combined with the first Komárom factory (7.5 GWh) and the second (10 GWh), SK On's total production capacity in Hungary reaches 47.5 GWh annually.

"This Q1 Award is the result of our headquarters and local team members working together with quality as our top priority," Kim said. "We will continue to raise the manufacturing and quality competitiveness of SK On's Hungary factory through ongoing improvement and proactive quality management, and actively meet the trust our customers place in us."

Meanwhile, SK On recently signed a supply agreement with Posco Future M for lithium iron phosphate (LFP) cathode materials for secondary batteries valued at 1.07 trillion won ($791 million), securing a stable supply chain for key materials.

The cathode materials supplied by Posco Future M are set to be used in the production of LFP battery cells for energy storage systems (ESS) at SK On's factory in Georgia starting in 2027.

SK On has been accelerating its push into the North American ESS market. In August, it signed an LFP battery cell supply agreement with US ESS company Neovolta Power, and in September last year it concluded an ESS supply deal with US renewable energy firm Flatiron Energy Development. Through the agreement with Posco Future M, the company aims to build a non-Chinese supply chain covering not only battery production but also key materials.