South Korean electric vehicle (EV) battery manufacturer SK On Company has agreed to discontinue its two partnerships with Chinese battery manufacturer EVE Power (Hong Kong) Company as part of its "portfolio rebalancing" strategy, according to local reports.

SK On, owned by South Korean oil refiner SK Innovation Company, confirmed in a regulatory filing that it plans to sell its 49% stake in Chinese battery manufacturer Huizhou EVE United Energy Company (EUE), which was established in 2018, to its joint venture partner EVE Power. The stake is valued at KRW 476 billion (US$ 324 million).

SK On also revealed that it plans to acquire EVE Power’s 30% stake in SK On Jiangsu Company (SKOJ), which was established in 2019, to become the company’s sole shareholder. The stake is valued at KRW 435 billion (US$ 296 million),

The two companies have agreed to exchange their respective stakes in the two joint ventures on the 28 February 2026, bringing an end to their partnership. SK On confirmed that EVE Power has agreed to pay it KRW 41 billion, due to the valuation difference between the two shareholdings.

A spokesperson for SK On said in a statement: “The stake swap is intended to allow SK On to operate SKOJ as a wholly owned subsidiary, so we can respond more quickly to market conditions and more flexibly address customer demand.”

Many global automakers and first-tier suppliers have been separating their Chinese and global supply chains in recent months, in response to the deepening trade war between the US and China.