South Korean energy and petrochemicals company SK Innovation has announced plans to ramp up its electric vehicle (EV) battery business, saying it will be spending 30 trillion won (RM110 billion) over the next five years to multiply production capacity by five times in order to capture surging global demand.
While the company’s oil refining and distribution business was its biggest earner last year, generating more than 60% of total sales, it is looking at its EV battery operations as a growth driver, Nikkei Asia reports. The battery division contributed just 5% of the company’s 34 trillion won (RM124.8 billion) in revenue last year, but earnings are expected to grow significantly.
The company, currently the world’s sixth-largest battery producer, has landed long-term supply contracts with the likes of Hyundai, Volkswagen and Ford, and said it already has orders worth 130 billion won (RM477 million) on its books. It is building five new factories in the US, Europe and China, and is targeting production capacity of 200 gigawatt-hours by 2025, up from the 40 GWh it is producing at present.
Plans are afoot to spin off the battery unit and take it public to raise funds for the expansion of the business. Ji Dong-seop, the head of SK Innovation’s battery business, said this would be done as quickly as possible so that the company doesn’t miss out on the opportunity.
SK Innovation held just a 5.2% share of the global EV battery market in 2020, research data showed, but Ji said the company is aiming to rise to the world’s top three by late 2022. The field is currently led by China’s Contemporary Amperex Technology (CATL), along with South Korea’s LG Chem and Japan’s Panasonic.
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Yeah yeah everything good until their battery explodes.
Future of cars = “heartless” box with battery+motor
Buy battery get AZ dose for free.
The EV car with solid state battery is the future. Please enjoy the internal combustion engine now because in less than 10 years time there will be at least 30% EV in Malaysia. And probably in 30 years time or less there will be no steering column inside car with full autonomous driving.
People who still scare of turbo engine and continental cars should rethink how many more chances you meet the problem in EV when it arrive. Why don’t try the turbocharged or
Or continental car before the EV arrive. When EV car arrive there will be least change of repair regardless brands. EV car is less components and almost no regular maintenance needed since no engine and transmission lubricant needed, no spark plug, fan belt, radiator etc. The wear and tear parts are wipers, suspensions and arms and tyres. The brake pad may last till we sold the car as it can last approximately 200k miles. Toyota aiming the solid state battery can last about 30 years, so no battery replacement needed before reaching 30 years.