SK Innovation selects Hungary for first overseas EV battery plant

By Lim Chang-won Posted : November 30, 2017, 16:43 Updated : November 30, 2017, 16:43

[Courtesy of SK Innovation]


SK Innovation, a lucrative subsidiary of South Korea's SK Group, has selected Hungary as the venue for its first overseas battery plant to meet surging demands for electric vehicles in Europe.

The plant will be built at a cost of 840 billion won (772 million US dollars) in the northern Hungarian city of Komarom, which is home to Germany carmaker Audi and Japan's Suzuki. Daimler also has a plant in a nearby region.

SK Innovation said ground would be broken in February next year to build a plant capable of producing a bigger amount of EV batteries than its domestic factory in the southwestern county of Seosan. At the same time, the company plans to expand its domestic battery production.

The Komarom plant underlines SK Group chairman Chey Tae-won's "Deep Change" initiative seeking sustainable growth engines. SK Innovation has diversified its business portfolio to nurture battery and chemical businesses.

Domestic rivals LG Chem and Samsung SDI are to have EV battery plants in Poland and Hungary respectively as China builds barriers to protect its battery industry.

SK Innovation aims to secure 30 percent of the global battery market by 2025 by developing batteries that would allow an electric vehicle to travel more than 500 kilometers (310 miles) on a single charge by 2018 and 700 kilometers by early 2020.

SK Innovation's main income now comes from chemical and petroleum-related products that helped the company post record earnings last year.


 
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