SK On gathers another 880 million euros
SK On, the battery division of the South Korean company SK Innovation, has secured further capital for its global expansion. SK On has now managed to well exceed its targeted investment amount of 4 trillion won with the addition of this latest financing round.
This most recent investment round includes investments of 1.05 trillion won (746 million euros) from the MBK consortium of financial investors from the USA, the Middle East and other regions. Another 190 billion won (134 million euros) comes from SNB Capital, a subsidiary of Saudi Arabia’s largest commercial bank, making up a total of 880 million euros.
The South Korean company sees its course and position confirmed by these “pre-IPO equity investments.” In announcing these latest investments, the company stated that “Despite the unfavourable trend in the global financial environment for attracting new capital, the growth potential of the electric vehicle (EV) battery business and SK On’s technological competitiveness have been recognised in the capital market.”
SK On already raised investment funds of 1.2 trillion won through Korea Investment Private Equity and received an additional investment of 2 trillion won from its parent company SK Innovation, for a total of 3.2 trillion won (about 2.2 billion euros). Along with the current financing, about three billion euros have been raised – or the equivalent of 4.44 trillion won. SK On points out that this exceeds the original financing target of four trillion won.
SK On currently operates electric vehicle battery production facilities in South Korea, the USA, China and Hungary and plans to increase its annual production capacity from 88 GWh in 2022 to at least 220 GWh by 2025.