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Koreans will invest $26 billion in the production of batteries for electric vehicles

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Image source: Антон Денисов / РИА Новости

The South Korean company SK Innovation aims to become one of the three industry leaders by 2022: it will invest $ 26 billion in the production of batteries for electric vehicles to increase it five times.

SK Innovation plans to invest $ 26.5 billion in the production of batteries for electric vehicles over the next five years. The South Korean manufacturer expects to increase the production capacity for the production of these products five times during this time.

Last year, batteries for electric vehicles brought SK Innovation only 5% of all revenue. For comparison, the business related to oil refining and refining provides more than 80% of the company's revenue.

In total, SK Innovation is building five new plants in the USA, Europe and China. By 2025, their combined performance will correspond to the possibility of producing batteries with a total capacity of 200 GWh per year. Currently, the production capacity of SK Innovation is estimated at 40 GWh.

SK Innovation has already signed long-term supply contracts with Hyundai Motor, Volkswagen, Ford Motor and other major automakers. Now it is the sixth among battery manufacturers, occupying only 5.2% of the global market by the end of 2020. By implementing its plans, the company expects to become one of the three industry leaders by 2022. Now it includes the Chinese company Contemporary Amperex Technology Ltd. (CATL), South Korean LG Chem and Japanese Panasonic.

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