Aju Business Daily

SEOUL -- Buoyed by a new contract with German car giant Volkswagen, SK Innovation (SKI), a subsidiary of South Korea's third-largest conglomerate SK Group, is actively looking for candidates to build new plants for electric vehicle battery cells in the United States and Europe.

"We will aggressively expand our global presence," an SKI official said, adding the contract with Volkswagen acknowledged SKI's excellent technology. Volkswagen selected SKI as the fourth strategic supplier of battery cells to cover its demand in North America.

Volkswagen, which plans to bring 50 new full-electric models by 2025, will receive battery cells from four companies including LG Chem, Samsung SDI, SKI and China's CATL

"Details such as supply quantity and price are flexible depending on the contract with (Volkswagen)," the SKI official said. "This large-scale order acknowledged SK Innovation's excellent electric vehicle battery manufacturing technology and stable supply capability by global carmakers."

SK Innovation, a top refinery in South Korea, has bolstered its battery business to catch up with domestic rivals LG Chem and Samsung SDI. SK Group chairman Chey Tae-won has promised to nurture the group's battery business as a sustainable growth engine.

SK Innovation started building its battery plant in Changzhou in China's southeastern Jiangsu province this year after the construction of its first overseas plant in Hungary began in February. In October, the company set up a wholly owned subsidiary in Changzhou to produce key battery components.