SK Innovation is working on increasing its electric vehicle (EV) battery production capacity in order to meet a series of requests for increased supply of batteries from global automakers. The company is currently expanding its production plants in Europe, China, and the United States simultaneously. As it continues to secure additional orders and increase its EV battery production capacity, it is likely that the company will be able to become a top three EV battery supplier in the global market faster before 2025 when it was initially looking to achieve the goal by.
According to the industry on Thursday, it is reported that the company has set a new goal of becoming a top three EV battery supplier within the next two years as it continues to see requests for increased supply of batteries from global automakers including Volkswagen. To achieve its new goal, it plans to be very active in increasing its current production capacity.
The company was looking to become a top three EV battery supplier by 2025 initially. However, its EV battery business has been growing at a rapid pace. In fact, its monthly market share (7%) reached its highest point in October last year and placed the company at the fourth spot after Panasonic (12%).
SK Innovation current supplies batteries to Volkswagen for “ID.4” that was released in Europe. In order to provide a stable supply of batteries, it is working on increasing production capacities of its battery plants in Europe.
Its second plant in Europe, which is scheduled to go into operation in the second half this year, currently has a production capacity of 9.8 GWh that is equivalent to 200,000 EV batteries. In addition to Volkswagen, the company plans to supply batteries to Daimler and Hyundai Motor Company as well. It is reported that the company is looking into building its third EV battery plant in Europe.
The company is also building plants in the United States, specifically in the state of Georgia, as well. Its second plant in Georgia currently has a production capacity of 9.8 GWh and is responsible for making batteries for Ford and Volkswagen. It is also working on increasing the current production capacity of its plant in Yancheng, China to supply batteries to BAIC Motor.
The industry believes that it will be possible for SK Innovation to become a top three EV battery supplier earlier than 2025 as the company is quickly increasing number of its customers. Although there is still a gap between SK Innovation and Panasonic, which is currently sitting on the third spot, the industry believes that SK Innovation will be able to overtake Panasonic as Panasonic has been taking a conservative approach towards investment.
Panasonic currently has Tesla as its customer. However, there is a growing need for the company to secure new customers as LG Energy Solution has become the major battery supplier of Tesla. Panasonic’s current EV battery production capacity stands at 47 GWh. It is likely that Panasonic lost its position to LG Energy Solution because it disregarded Tesla’s request to increase its production capacity.
SK Innovation plans to increase its production capacity from 40 GWh (as of the end of last year) to 60 GWh by the end of this year by investing heavily in its plants in Europe, the United States, and China.
An official for SK Innovation said that the company plans to increase its investment in EV battery according to growth of the global EV battery market.
Staff Reporter Kim, Jiwoong | jw0316@etnews.com