SK On raises funds to expand production capacities
SK On, the battery division of the South Korean company SK Innovation, which was spun off in autumn 2021, will receive 2.8 trillion won in additional capital to expand its business. Converted, this currently corresponds to around 2 billion euros.
This is according to an official company announcement. 2 trillion won of the fresh capital will come from the parent company SK Innovation and another 800 billion won from Korea Investment Private Equity, a 100 per cent subsidiary of the Korea Investment Financial Group. The latter investor could increase the amount by another 500 billion won to 1.3 trillion won in the course of the still-young year, according to SK Innovation.
The group says this strategy will ensure that SK On can respond to the growing demand for batteries for electric vehicles in the medium to long term. “As SK On is expanding its business by winning orders from big customers such as Ford, Hyundai Motor, and Volkswagen, SK Innovation evaluates that SK On will be able to speed up its growth by securing investment funds without a hitch,” the parent company informs. The company’s own direct investment should also “eliminate uncertainty in the market for the battery business”.
In the future, SK On could diversify its ownership structure even further: It plans to continue securing investment funds. “In addition to Korea Investment Private Equity, SK On also sees the possibility of attracting other external investors in the future,” the statement added.
SK On is currently focusing heavily on building battery cell production sites in the United States and Hungary. Partly on its own, partly in tandem such as with Ford or Hyundai Motor Group. SK Innovation officially spun off its battery business on 1 October 2021. The battery division of the South Korean company, which has been independent since then, is headed by Jee Dong-seob.