Posted on 18 Aug 2023
South Korean battery giant SK On announced on Wednesday it plans to invest KRW 1.5 trillion ($1.12 billion) for its domestic battery cell production plan, Kallanish learns.
It has signed a memorandum of understanding with the government of Seosan city and South Chungcheong Province. It plans to land its third battery cell factory on a 44,152-square-metre land inside the Seosan Auto Valley complex.
The battery manufacturer expects the new factory to be completed in 2025, with a planned annual production capacity of 14 gigawatt-hours by 2028. By then, its domestic production capacity will rise from 5 GWh to 20 GWh – the equivalent to 280,000 electric vehicle battery packs.
SK On already operates two battery plants in the city of Seosan and plans to transform them into smart factories to expand production capacity, improve yields and accelerate its manufacturing process by more than 30 times.
The direct reason for this expansion is Hyundai and Kia’s mass production plan. They are SK On’s largest clients.
Hyundai plans to mass produce EVs at the Ulsan plant in South Gyeongsang Province from late 2025. The Ulsan plant will have an annual EV production capacity of 150,000 units.
Kia’s sports utility vehicle EV7, which is scheduled to be released in 2025, is likely to use battery packs provided by SK On.
Source:Kallanish
