SK On Invests $1.12 Billion to Boost Battery Production in South Korea

South Korean battery manufacturer SK On has announced an investment of 1.5 trillion won ($1.12 billion) to expand its domestic production capacity. The company’s battery unit, SK On, which supplies batteries to automotive giants Ford Motor Co and Hyundai Motor Co, is set to enhance its Seosan plant, a pivotal domestic battery production hub. 

The investment agreement, made by an MOU signing ceremony attended by key stakeholders, outlines SK On’s plans to expand its third factory within the Seosan Auto Valley Industrial Complex, covering an expansive 44,152 square meters (approximately 13,348 pyeong. 

This expansion is projected to elevate South Korea’s annual battery production capacity to 20 GWh, translating to the potential to power approximately 280,000 electric vehicles. By enhancing Plant 3’s production capabilities through a combination of facility replacement and process improvements, SK On aims to achieve a secondary battery production scale of up to 14 GWh by 2028.

SK On’s investment in expansion is expected to impact the Seosan plant’s battery production capabilities. The plant’s annual battery production capacity, currently at five gigawatt-hours, is poised to experience a significant four-fold increase to 20 gigawatt-hours. This expansion is projected to facilitate the manufacture of an additional 200,000 electric vehicle batteries annually.

The profound economic implications of this investment are expected to reverberate in the local region. With the creation of approximately 800 new job opportunities and an annual added value of KRW 124.1 billion, the city foresees substantial benefits for the local economy. 

Additionally, the investment is anticipated to play a pivotal role in fostering the growth of the electric vehicle ecosystem in the region, contributing to the development of related industries.

SK On’s CEO, Ji Dong-seop, underscored the significance of this investment in strengthening domestic battery production capabilities. 

Lee Wan-seop, Mayor of Seosan, said, “We look forward to the revitalization of the local economy and the development of the automobile industry through SK On’s large-scale investment.”.

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