SK Innovation doubles EV battery production

An SK Innovation engineer monitors the production of electric vehicle batteries at the firm's plant in Seosan, South Chungcheong Province, Wednesday. The company recently doubled its annual battery production to meet growing demand at home and abroad. / Courtesy of SK

By Park Si-soo

SEOSAN, South Chungcheong Province ― SK Innovation said Wednesday that it has doubled its annual production of electric vehicle (EV) batteries to meet increasing demand at home and abroad.

At the expanded rate, the nation's biggest energy company can supply batteries that power up to 30,000 EVs. Kia Motor and Beijing Automotive Industry Holding are key customers.

Kia's Soul EV, which is powered by SK batteries, was named the best-selling EV in Korea last year after sales of 414, which accounted for more than one third of the domestic EV market. The Chinese carmaker produces two EV models ― C33 and C70 ― with SK products.

"The plant is running around the clock at full capacity to meet demand," an SK official said.

SK sees significant growth potential with the Chinese market. The country is expected to have 5 million EVs by 2020. SK is working to become the biggest EV battery supplier in China by 2017. To that end, the company is trying to expand its supply to Chinese carmakers.

Last year, SK established the sales agency Beijing BESK Technology in the Chinese capital to have better access to Chinese clients.

"Our sales of EV batteries are expected to triple this year, compared with that of last year, due to expanded production," said Kim Yoo-suk, a SK Innovation vice president in charge of the EV battery business. "We will continue to expand our partnership with carmakers and improve production and management efficiency. We are also committed to producing innovative products."

In May, SK Innovation CEO Chung Chul-khil said the company would supply EV batteries to German carmaker Daimler from the latter part of 2016. The chief executive noted the supply volume for Daimler would be three times higher than the combined volume for SK's current clients ― Hyundai Motor, Kia Motors and Beijing Automotive Industry Holding.

The world's EV market is expected to expand continuously as Europe, the United States and other car-making nations provide various benefits, including subsidies, to EV drivers as well as introducing tight environmental regulations which will dampen demand for vehicles that use fossil fuel.

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