SK Innovation selects Commerce city as site of new U.S. battery plant

By Lim Chang-won Posted : November 26, 2018, 18:00 Updated : November 26, 2018, 18:00

[Courtesy of SK Innovation]


SEOUL --SK Innovation (SKI), a subsidiary of South Korea's third-largest conglomerate SK Group, selected Commerce, a city in Jackson County, Georgia, as the site of its new plant for electric vehicle battery cells in the United States.

SKI said Monday that its board approved a 1.14 trillion won ($1.01 billion) investment to build the U.S. plant with an annual capacity of 9.8GWh. Construction would begin in early 2019 for completion in 2022. The company aims to increase its overall battery production capacity from 4.7 GWh to 55GWh by 2022.

SKI CEO Kim Jun said the U.S. factory reflects SK Innovation's efforts to enhance the global competitiveness of its battery business. "We will grow into a global top player in the battery business, which is regarded as the second semiconductor."

The company said it could increase production in the U.S. plant, citing rising orders in the global battery market. Georgia was selected because of its geographical proximity to many companies including South Korea's Hyundai auto group.

SKI, 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.

SKI 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.

Volkswagen has 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.
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