SK Innovation is to invest US$859m in an additional battery plant in Hungary.
The decision comes as SK Innovation aims to strengthen its presence in the European market in additioin to the 7.5GWh EV battery plant, which has been under construction in Komarom, Hungary since early last year.
The new plant will be built on a 117,130 square-metre parcel of land, which is part of the 430,000 square-metre site in Komarom, Hungary. The land was originally acquired by SK Innovation for the construction of its No.1 Hungarian battery plant.
SK Innovation will break ground on the plant in March this year and finish construction in the first half of 2020. The company will begin mass production and delivery in early 2022 once facility stabilisation, commissioning and product certification is completed.
By 2021 when the new plant is completed, SK Innovation’s global production capacity is expected to include the No.1 Komarom plant (7.5GWh per year) and the new No.2 Komarom plant in Hungary, the Changzhou plant in China (7.5GWh per year) and the Georgia plant in the US (9.8GWh per year), in addition to the Seosan plant in Korea (4.7GWh per year).
This will help SK Innovation to take a step closer to its mid- and long-term goals to “increase battery production capacity to 60GWh by 2022.
“SK Innovation will be able to strengthen the position of our battery business in the European market by deciding to build a new plant as an expansion of our first plant in Europe,” said SK Innovation CEO, Kim Jun.