According to a recent article in Business Korea, SK Innovation – a subsidiary of Korea’s giant SK conglomerate – is planning to invest $1.05 billion USD to build an EV battery manufacturing plant in Yancheng, China. The new plant will join the company’s pre-existing battery plant in Changzhou.
SK Innovation’s plans for the new plant are tied up with Korean automaker Kia’s own plans. Kia plans to produce more EVs at its own Yangcheng plant and the batteries from SK Innovation’s new plant will mostly go to this location.
SK Innovation’s pre-existing plant in Changzhou has an annual production capacity of 7.5 GWh and the company is planning to build yet another plant with Chinese battery manufacturer Eve Energy.
Other South Korean battery manufacturers are also increasing manufacturing capacity in China. LG Chem built a second plant in Nanjing last year, which increased its total manufacturing capacity by 32 GWh, and Samsung SDI’s second plant in Xi’an is currently under construction.