Welcome to The Garage Journal...
First question is what will you be doing in the shop?
Any welding or hot work? If so then steel is your best choice for a wall covering.
If not then your plan of 1/2" OSB will work fine.
I prefer
LP Smart Side 4' x 8' Panels. It's a tongue and groove product that looks nicer than OSB simply because it has a wood grain surface and it is a tongue & groove product so the seams all disappear. It also is pre-painted, leave it as is or paint to suit. OSB soaks up paint like a sponge.
Photo below was our previous shop. It uses LP SmartSide panels. What you see is just the panels nailed to the studs. Nothing was painted after the fact.
Good luck and again, Welcome.