SK Innovation partners with EVE to launch third battery plant in China

South Korea-based SK Innovation Co. has entered into a joint venture with Chinese battery maker EVE Energy Co. to set up a third battery plant in China, according to a local media report on Dec. 15.

Earlier this month, SK Innovation acquired a 49% stake in EVE Asia Co., the subsidiary of EVE Energy, through a debt-to-equity swap. The two parties are set to co-manage the electric vehicle battery plant in Huizhou, China.

The third battery plant’s production capacity will be around 10-gigawatt hours (Gwh), which can run 200,000 electric vehicles. The plant is slated to open next year and its battery products will be used in electric vehicles sold in China, including Hyundai Motor Co.'s cars.

SK Innovation has been increasing its presence in the world's largest EV market. Last year, the company partnered with Beijing Automotive Group to set up a battery plant in Changzhou, which opened in December 2019. Also, another JV with EVE, a battery plant located in Yancheng, China, is set to begin operations next year.

In China alone, SK Innovation will be able to produce around 27GWh of battery cells next year and around 30GWh in 2022, according to the company.

Meanwhile, SK Innovation earlier said that it will increase its annual production capacity to 100GWh by 2025 from the current 19.7GWh once the 21.5 GWh US plant and the 9.8 GWh Hungary factory are completed by 2022, surpassing the 73 GWh capacity of Panasonic Corp., the world’s third-largest EV battery maker.

Although a latecomer to the global battery market, SK Innovation has been quick to catch up, joining the global top ten battery makers for the first time last year and climbing to sixth place in September of this year.


Danbee Lee edited this article.