SK Inc. and SK Energy buy $150 million stake in Atom Power

Industry

Published: 18 Aug. 2022, 17:33 Updated: 18 Aug. 2022, 19:05

SK Inc. and SK Energy buy $150 million stake in Atom Power

Kim Moo-hwan, left, head of SK Inc.'s Green Investment Center, Ryan Kennedy, CEO of Atom Power, and Kang Dong-soo, head of SK Energy’s solution and platform business division, pose for a photo during a deal closing ceremony held in Jongno District, central Seoul, Wednesday. [SK INNONVATION]

SK Inc. and SK Energy on Thursday said they acquired a controlling stake of Atom Power, a U.S. energy company, for $150 million.

The exact shareholdings have not been disclosed other than to say they jointly have control of the company. SK Inc. would not confirm whether it is a majority stake.

SK Inc. owns 33.4 percent of SK Innovation, and SK Energy, an oil refinery, is a wholly-owned subsidiary of SK Innovation.

Founded in 2014, Atom Power is a Huntersville, North Carolina-based company specializing in semiconductor-based circuit breakers for electric vehicle (EV) chargers.

A circuit breaker is a safety device used to cut off power in case of an overcurrent or short circuit. Atom Power developed a solid state circuit breaker (SSCB), which is controlled by power semiconductors. The company's SSCB is capable of measuring and collecting electricity consumption data in each household.

When used in EV charging systems, Atom Power's SSCB reduces costs in installation and management, and also requires less space compared to a regular circuit breaker, according to the purchasers. While a regular circuit breaker needs to be installed for each charger, Atom Power's device can integrate several circuit breakers on a central panel.

The SK companies said that they expect the acquisition to help establish an "energy solution platform," that enhances efficiency in electricity production and consumption.

SK Energy, which runs gas stations, hopes to utilize Atom Power's technology in EV charging systems and to expand the EV charging business to other locations such as apartments and shopping malls.

The "partnership helps us expedite and scale power delivery for a broad range of commercial and residential applications," said Ryan Kennedy, CEO of Atom Power.

Kim Moo-hwan, head of SK Inc.'s Green Investment Center, said that "through the acquisition of Atom Power, we will secure the core technologies to energy solution business, and discover numerous business opportunities, including realizing our energy solution platforms."

Kang Dong-soo, head of SK Energy's solution and platform business division, said that the acquisition "will be a great addition to SK Energy's road to becoming an eco-friendly energy solution and mobility platform service provider."

The companies held a deal closing ceremony on Wednesday at SK Seorin Building in Jongno District, central Seoul with Kim, Kang and Kennedy in attendance.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]