SK Innovation adds a third EV battery factory in China

[Photo provided by SK Innovation Co.]

South Korea’s SK Innovation Co. adds a third battery plant in China through a joint venture with a local company to expand its presence in the world’s biggest EV market.

According to multiple industry sources on Monday, SK Innovation has signed a deal with Chinese battery manufacturer EVE Energy Co., in which it would own a 49 percent stake in the company’s battery factory in Huizhou in China. The plant has a 10-Gigawatt hour (GWh) capacity.

The batteries could power electric vehicle models of Hyundai Motor Co. sold in China.

The joint facility is SK Innovation’s third battery production plant in China. Construction of a joint facility with Beijing Automotive Group in Changzhou has been completed last year and another joint facility in Yancheng with EVE Energy is scheduled to begin operations next year after trial run.

An unnamed official from SK Innovation said the Korean battery maker will be able to produce 27 GWh worth battery cells in China next year and 30 GWh in the following year. The company has decided to make the latest strategic investment to respond swiftly to the rapidly bourgeoning electric vehicle market in China.

As of 11 a.m., shares of SK Innovation were trading 0.27 percent higher at 183,500 won on Tuesday.

By Won Ho-sup and Lee Eun-joo

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