SK Innovation is expanding its production capacity to become a major player in the EV market
There are not many details besides the investment cost of 579.9 billion won ($488.30 million).
The plan is considered a kind of bet because China hasn’t opened its EV battery market for foreign companies, which means that EVs with South Korean batteries are not eligible for government subsidies.
Success in China will depend on government decisions and the situation after 2020 when subsidies for plug-in cars will be phased out and sales will be driven by required quotas.
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“SK Innovation broke ground in August on its first Chinese plant under a joint venture with Beijing Electronics Holding Co Ltd and BAIC Motor Corp Ltd, with investment set to reach 5 billion yuan ($744.30 million) by 2020.”
“SK Innovation said its second China factory aims to meet rising orders for EV batteries globally, without elaborating on its Chinese partner, the site and capacity of the proposed plant.”
“Reuters reported last month that SK Innovation was in talks to set up separate battery-making joint ventures with Chinese partners and Volkswagen <AG VOWG_p.DE>, citing the president of the Korean company’s battery business.”
SK Innovation already produces batteries in South Korea, has a new plant in Hungary and announced a big project in the U.S., drawing a path to increase production from 5 GWh to 100 GWh by 2025.
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