SEOUL, South Korea — SK Innovation, a South Korean energy and materials company, said Thursday that it will invest 30 trillion won ($26.5 billion) in its electric vehicle battery business over the next five years, with the goal of increasing production capacity by a factor of five to meet rising worldwide demand. The world’s sixth-largest battery manufacturer claims to have 130 billion won in orders on its books. During a business strategy event in Seoul, CEO and President Kim Jun remarked, “We are moving from carbon to green, and we will convert into an energy and materials company that is good for the environment.” EV battery business at SK Innovation accounted for only 5% of the company’s 34 trillion won in revenue last year. Oil refining and distribution accounted for more than 60% of sales, while petrochemicals accounted for more than 20%. Despite this, the South Korean firm sees batteries as a growth driver. It secured long-term supply agreements with Hyundai Motor, Volkswagen, Ford Motor, and other well-known automakers. In the United States, Europe, and China, SK Innovation is constructing five new factories. By 2025, the company wants to reach a production capacity of 200 gigawatt-hours, up from 40 GWh now. To fund the growth, the supplier plans to split off the battery section and sell it to the public. “We need to complete the spinoff as soon as possible so that we don’t miss out on the best investment opportunity,” said Ji Dong-seop, the head of SK Innovation’s battery business. According to Tokyo analytics firm Techno Systems Research, SK Innovation had only a 5.2 percent share of the global EV battery market in 2020. Contemporary Amperex Technology Ltd. (CATL) of China, LG Chem of South Korea, and Panasonic of Japan are the market leaders. “By late 2022, we will have risen to the top three in the world,” Ji predicted./n
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