SK Innovation will invest US$859 million in its Hungarian plant
SK Innovation has expanded its electric vehicle battery business into the global market since the beginning of this year. SK Innovation announced that it would invest about US$859 million in Hungary only three months after it made an announcement to build a plant in the US late last year.
The decision came as SK Innovation aims to strengthen its presence in the European market on top of the 7.5 GWh EV battery plant that is under construction in Komarom, Hungary since early last year. The new plant will be built on a 117,130 square-metre parcel of land, which is part of the 430,000 square-metre site in Komarom, Hungary. The land was originally acquired by SK Innovation for the construction of its No.1 Hungarian battery plant.
With the new plant, SK Innovation will gain momentum to reinforce its foothold in the European EV market which is growing fast thanks to stricter environmental regulations.
SK Innovation will break ground on the plant in March this year and finish construction in the first half of 2020. The company will begin mass production and delivery in early 2022 once facility stabilisation, commissioning and product certification is completed.
By 2021 when the new plant is completed, SK Innovation’s global production capacity is expected to include the No.1 Komarom plant (7.5 GWh per year) and the new No.2 Komarom plant in Hungary, Changzhou plant in China (7.5 GWh per year), Georgia plant in the U.S. (9.8 GWh per year), in addition to the Seosan plant in Korea (4.7 GWh per year).
This achievement will help SK Innovation to take a step closer to its mid- and long-term goals to “increase battery production capacity to 60 GWh by 2022 and join the ranks of the best EV battery producers” as CEO of SK Innovation Kim Jun said during CES 2019.
“SK Innovation will be able to strengthen the position of our battery business in the European market by deciding to build a new plant as an expansion of our first plant in Europe,” CEO of SK Innovation Kim Jun said. “SK Innovation will become one of the best global EV battery producers by 2022 and raise the value of our company by obtaining production capacity to utilise our technological process.”