SK Innovation Increases Investment in US EV Battery Business to $2.5 Bn

SK Innovation has announced that it plans for additional investment in its US battery business, to fund the start of construction of a 2nd EV battery plant.

South Korea-based SK Innovation has announced that it plans for additional investment in its US battery business, following approval by its Board of Directors to fund the start of construction of a second electric vehicle (EV) battery plant in Georgia. The firm plans to invest a total of USD 2.5 billion in its US battery business to build two plants at its site in Commerce, Georgia, with a combined annual capacity of 21.5 GWh.

The company had initially announced a USD 1.67 billion investment at the Georgia site, but the board’s decision expands the company’s US investment plans to help meet anticipated consumers’ demand for EVs in the US.

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The firm first broke ground on the first plant at the Georgia site in March 2019 and is expected to begin mass production in 2022. Construction on the second plant is expected to begin in July at the same site with mass production to start in 2023. The company has stated that it could invest as much as USD 5 billion in its US battery business and create as many as 6,000 jobs.

“While the global community faces challenging times, SK Innovation believes it is important to continue making strategic investments to drive economic growth and meaningful change,” said SK Innovation CEO Jun Kim. “With this investment, SK Innovation’s battery business will significantly contribute to not only the local Georgia economy but the development of the US EV industry value chain and ecosystem.”

When both plants are complete in 2023, the Georgia site will join facilities in Europe and Asia to give SK Innovation a projected annual global capacity of 71 GWh, making it one of the leading makers of EV batteries in the world.

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Established as South Korea’s first oil refining company in 1962, SK Innovation engages in diverse areas of business, including exploration and production (E&P), batteries, and information and electronics materials.