Investment of 1.267 trillion won, 30GWh annual plant establishment… Operation target for 2024
Increase production target to 125GWh by 2025… “Responding to Crisis with Bold Investment”
(Seoul = Yonhap News) Reporter Kim Young-shin and Kim Chul-seon = SK Innovation[096770]In the city of Ivancsa, Hungary, an additional electric vehicle battery plant will be established, the largest ever.
The new plant, which is the third plant in Europe, has a production capacity of 30 GWh, the largest among global production bases. The investment amount is also the largest among European factories with an investment of 2.6 trillion won by 2028.
SK Innovation announced on the 29th that it will invest about 1.267 trillion won in its Hungarian subsidiary (SK Battery Hungary Kft) to invest in a new plant for electric vehicle batteries in Europe. The company decided on such an investment plan at the board of directors the day before.
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The company explained that the establishment of the new factory is a bold investment for the future despite the crisis. The production capacity of Europe’s third plant, which will be in Hungarian Ibancha, is 30GWh, which is more than 1.5 times that of the first and second plants in Komarom, Hungary.
It is a long-term project that starts construction in the third quarter of this year and sequentially invests a total of 2.6 trillion won ($2.29 billion) until 2028. The funds invested this time correspond to 50% of the total investment.
SK Innovation has secured a site of about 700,000 square meters (210,000 pyeong) in the city. When converted to the area of a soccer field, it reaches 98.
If it is fully operational from 2024, it will be able to produce batteries equivalent to 430,000 electric vehicles (driving 400km or more per charge, based on 70kWh capacity).
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Ivancha was chosen as the final location in that it is located about 50km southwest of the capital Budapest, and it is well equipped with logistics and infrastructure such as railroads and roads, and it is close to large cities, so it is easy to supply and supply personnel.
SK Innovation decided to make this investment in collaboration with the Hungarian government. SK Innovation’s top management and the Hungarian government held a meeting to make an official investment decision on video this afternoon.
The meeting was attended by Hungarian Minister of Foreign Affairs and Trade, Szijjarto Peter, Molnar Tibor, Mayor of Ivan Car, and Investment Commissioner Esik Robert, and SK Innovation is headed by Joon Kim, CEO of the battery business. Attended this.
In line with the establishment of the 3rd plant in Europe, SK Innovation has proposed a target for electric vehicle battery production capacity ▲ 2023 production capacity 85GW ▲ 2025 125GWh or more. This is a further increase from the previous target of 100GW in 2025.
Currently, SK Innovation is operating its Seosan plant in Korea (4.7GWh) and its first plant in Hungary (7.5GWh). In addition, this year, the Yancheng and Huizhou plants in China will be fully operated with a production scale of 20KWh.
In addition, the second plant in Hungary and the first plant in Georgia, which are under construction, are expected to begin mass production from the first quarter of next year with a scale of 9.8 GWh each. The second factory in the US (11.7GWh) is also under construction with the aim of mass production in 2023.
Including the 3 plants in Hungary, SK Innovation’s battery production plants will increase to six.
SK Innovation said, “We will secure business competitiveness in the fast-growing electric vehicle market and leap forward to become a global leader by winning more aggressive orders.”
As the petrochemical business was sluggish in the aftermath of Corona 19, it recorded a record-high loss of 2.5 trillion won per year last year, but only the battery business showed a growth trend.
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With this year as the first year of eco-friendly transition, it plans to focus more on the electric vehicle battery industry that best meets European eco-friendly policies.
Competition in the global electric vehicle battery market is intensifying day by day, and uncertainties such as LG Energy Solution and the burden before litigation are large, but the strategy is to break through the crisis with bold investment.
In a conference call, SK Innovation revealed that the current electric vehicle battery order balance is 550GWh, and that it is more than 70 trillion won in terms of sales. “We are continuously pursuing new orders for various manufacturers besides existing customers such as Daimler and Hyundai.”
“The management situation is difficult, but the decision to further grow eco-friendly mobility business in the future in order to complete ESG (environmental, social, governance) management,” said President Kim Joon. “This investment greatly contributes to the development of the global EV industry We will leap forward as a leading company.”
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2021/01/29 18:48 sent