Input 2021.01.29 18:28
SK innovation (096770)Announced on the 29th that it had held a board meeting on the 28th and decided to invest $1,184 million (about 1.27 trillion won) in a local subsidiary, SKBH (SK Battery Hungary) to build a new production plant in Europe.
To this end, SK Innovation has secured a site of about 700,000 m2 (about 210,000 pyeong) in Ivan Car. This is an area of 98 soccer fields.
The third plant in Europe is a long-term project in which construction begins in the third quarter of 2021 and investments are made sequentially until 2028. It is a total of 2.29 billion dollars (about 2.6 trillion won). The fund invested this time is 50% of the total investment amount, and SK Innovation plans to raise additional funds required for plant construction through external financing if necessary in accordance with the plant construction fund requirement schedule.
The Hungarian Ivancha city is about 50 km southwest of the capital Budapest. Ibancha has been selected as the best location for SK Innovation Europe’s 3rd battery plant as it is easy to supply and demand human resources as it is close to large cities along with smooth logistics infrastructure such as railroads and roads.
With this investment decision, SK Innovation is stepping closer to its mid- to long-term goal of becoming a global electric vehicle battery company with a production capacity of ‘125 GWh + α per year in 2025’.
The company said, “Through this, we can actively respond to European battery demand, which is expected to increase more than 6 times from 41GWh to 256GWh in 2025.”
SK Innovation President Kim Joon said, “With this investment, SK Innovation’s battery business will not only contribute significantly to the development of the global EV industry’s value chain and ecosystem, but will also leap forward as a leading company in the electric vehicle battery industry in the long run.”