SK Innovation does not regard European battery consortium as serious threat

By Lim Chang-won Posted : May 27, 2019, 17:07 Updated : May 27, 2019, 17:07

[Aju News DB]

SEOUL -- SK Innovation does not regard a new European consortium for joint research in batteries as a serious threat to its proposed partnership with German auto giant Volkswagen, saying the South Korean company has different technology lines.

Volkswagen has selected SK Innovation (SKI) as the fourth strategic supplier of battery cells to cover its demand in North America. In response, SKI is building a battery plant in Commerce in Jackson County, Georgia. European companies joined forces to form the European Battery Union (EBU) led by Volkswagen and Northvolt, a Swedish battery producer.

"We are in talks with Volkswagen about establishing a joint venture, and it has been less than a year since we discussed it," SKI's battery business head Yoon Ye-seon told reporters on Monday, adding Europe thinks about nurturing its own industry with the global battery market dominated by South Korea, Japan and China.

"Northvolt is not a big concern for us as we have different technology lines, and there are questions about mass-production," Yoon said. He also dismissed concerns about technology leaks, saying Volkswagen looks more interested in the stable supply of high-quality batteries than technology.

SKI CEO Kim Jun said competition requires concentrated efforts and global strategies by South Korean firms. "As the battery industry is at the early stage of growth in earnest, global competition is intensifying with not only China but also Europe nurturing their battery business."

SKI will increase the competitiveness of its battery business through continued investment and expanded its business scope into e-mobility and energy solutions, he said, adding SKI aims to become one of the world's top three battery producers in 2025 by increasing its production volume from 5GWh per year to 100 GWh.
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