SEOUL, July 13 (Reuters) - South Korean EV battery maker

SK On is in talks with automakers to supply prismatic batteries,

expanding from its existing pouch-type batteries, a senior

executive said, as it scrambles to turn around amid slowing

global electric vehicle (EV) demand.

SK On, a unit of energy group SK Innovation,

which supplies EV batteries to Ford Motor ( F ), Hyundai Motor ( HYMTF )

, Volkswagen among others, is speaking to

multiple automakers that are looking to line up prismatic

battery supply deals, SK On chief spokesperson Ko Chang-Kook

said.

"We are having talks with automakers who will take our

prismatic batteries ... we will now have the opportunity to

diversify our product portfolios sooner than later," Ko told

Reuters.

Ko did not disclose the names of automakers but said the

company has already completed the prismatic battery technology

and is prepared to start producing prismatic batteries once

discussions are finalized.

There are three types of lithium-ion batteries currently

used in EVs - prismatic, cylindrical and pouch-type, all of

which are fundamentally the same in functionality, but each has

pros and cons.

Prismatic and cylindrical batteries are cased in hard

materials. Pouch-types use sealed flexible foils and are

protected by thin metal bags. SK On currently produces only

pouch-type batteries for EVs.

While the firm secured prismatic battery technology, it is

also looking to develop cylindrical-type batteries, widely known

for the type used by Tesla.

When asked if SK On, which has never made a profit since it

was split off from SK Innovation in late 2021, plans to cut its

capital expenditure for the year, Ko said SK On is not

considering that for now, adding it will not cut research and

development spending.

Earlier this year, SK On's parent SK Innovation said it had

a capital spending budget of about 9 trillion won ($6.55

billion) for this year, with more than 80% allocated for SK On.

Cross-town rival LG Energy Solution (LGES) said

in April it plans to minimise capital expenditure this year due

to slowing EV demand. Last month, LGES paused part of

construction of its multi-billion dollar battery factory in the

U.S. state of Arizona as it adjusts the pace of planned

investment execution flexibly to optimize its operations.

In April, SK On said it was still on target to break even in

the second half of this year. The company said this month it

would implement across-the-board expense cuts, including

freezing salaries of all executives until the firm turns a

profit.

SK Innovation is expected to pursue a merger with profitable

gas affiliate SK E&S to help prop up SK On, local media outlets

have reported.

On Friday, SK Innovation said in a regulatory filing that it

would hold a board meting next Wednesday to discuss various

strategic measures, including mergers to strengthen its

competitiveness, but nothing has been decided.

($1 = 1,374.4200 won)