South Korean battery manufacturer SK Innovation has announced plans to invest KRW580bn (US$488m) to build a second electric vehicle (EV) battery plant in China, as it looks expand its presence in the world's largest and fastest growing market for these products.
The decision was made by the company's board earlier this week, although the location and local partner for this project has yet to be announced.
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The announcement follows a legal case brought against it in the USA last month by fellow South Korean battery-maker LG Chem alleging infringement of trade secrets and requesting the International Trade Commission to ban imports into the US of any SK Innovation products and samples relating to battery technology.
SK Innovation has company said it expects to have in place a global battery production capacity of 60 gigawatt-hours by 2022. It said its decision to invest in a second plant in China is to strengthen its ties in this market and to help it keep up with fast rising orders for EV batteries globally.
SK Innovation began building its first EV battery plant in China last August in Changzhou, Jiangsu province, in a joint venture with Beijing Electronics Holding and BAIC Motor Corp Ltd. Since then it has announced plans to build EV battery plants in the USA, Hungary and Poland.
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By GlobalData
