To produce pouch batteries with an annual capacity of 20GWh in Yancheng and Huizhou
SK Innovation started mass production of batteries at its Yancheng and Huizhou factories in China, which were jointly established with China’s EVE Energy. It started supplying new batteries to global automakers to target the Chinese EV market. It is said that Yoo-seok Kim, Head of SK Innovation’s Battery Marketing Unit, has recently visited a Chinese business site to check the supply situation.
According to industry sources on the 31st, SK Innovation started operation of a joint battery plant in Yancheng and Huizhou, China. Both factories were established by SK Innovation with an investment of about 2 trillion won with EVE Energy, a Chinese battery maker. It produces 20GWh (gigawatt hour) batteries per year and makes pouch batteries to be installed in EV launched by global automakers.
The operation of factories in Yancheng and Huizhou means the beginning of battery supply to global automakers. Specific automakers were not disclosed. The industry sees this as factories’ preparation for delivery to Chinese automakers. Yoo-seok Kim, Head of SK Innovation’s Battery Marketing Unit(Vice President) visited the Yancheng and Huizhou factories in the middle of this month for checking the preparation of pouch batteries to be supplied to finished vehicles.
The battery is a high nickel NCM (nickel, cobalt, manganese) battery. This is evaluated to have raised the battery capacity by increasing the nickel content to a high nickel NCM battery with 80%. SK Innovation started mass production of 80% NCM batteries this year. Battery sales are expected to increase as it starts the supply of Hyundai Motor’s ‘IONIQ 5’ and Volkswagen’s ‘ID.3’.
SK Innovation plans to strengthen its penetration into the Chinese EV market through three factories in China, including Yancheng and Huizhou. The Changzhou plant is a joint venture established by the Beijing Automobile Group in Changzhou, Jiangsu Province, China. The plant started mass production of 7GWh batteries in the 2Q of last year, which will be supplied to Beijing Automobile electric vehicle brand Arc Fox ‘Mark 5’ Sports Utility Vehicle (SUV). It is reported that SK Innovation plans to further expand its production capacity, in consideration of the growing demand for electric vehicles in China.
An SK Innovation official said, “The three factories in China have the largest production capacity. We will strengthen our targeting of the local market by leveraging on our Chinese production base.”
By Ji-woong Kim / jw0316@etnews.com