SK Innovation to build third battery plant in Hungary

Hyundai and SK in talks to form a joint venture says an unofficial report

According to The Korea Economic Daily Global Edition, Hyundai and SK Innovation are in talks to form a joint venture. Another interested candidate is said to be LG Energy Solution. Both SK Innovation and LG Energy Solution are in alliance with various other largest EV makers. This would mean expansion in terms of both research development and production for the companies.

SK Innovation to build third battery plant in Hungary
Image credits- Automotive News Europe

 

Two South Korean companies joining forces would not surprise us, especially because they are already working together on various projects. SK On also already has two battery plants in Commerce, Georgia, 9.8 and 11.7 GWh per year, and clearly is in an expansion mode. According to the article, undisclosed sources indicate that on the table is an investment of 2.5 trillion won ($1.9 billion), which would potentially result in a battery gigafactory with an output of roughly 20 GWh/year, pouch cells, nickel-rich NCM chemistry.

A memorandum of understanding between Hyundai and SK On might be announced later this month (on November 28), according to the report. Also, 20 GWh per year for a plant is expected to produce 300,000 electric cars annually, which would mean 67 kWh per car on average. We consider it kind of low, especially if the plant would be used for larger EVs, like SUVs, but maybe it’s an initial target. The output would have to be higher also if SK On would like to supply batteries for other Hyundai Motor Groups plants in the US, another one in Georgia and one in Alabama.

Hyundai manufacturing

Governor Brian Kemp announced Hyundai Mobis will invest $926 million into an EV power electric system plant. Known as one of the world’s biggest auto suppliers, the move will add at least 1,500 jobs to the area. “When we celebrated the groundbreaking of Hyundai’s new electric vehicle and battery manufacturing facility in Bryan County, we knew it would unleash transformational job creation and investment in that entire region of our state,” said Kemp.

“As we announce the second supplier in just two weeks to locate in that area, we’re excited to see their impact on the surrounding communities and the growing list of other job creators that will soon follow.” Construction on the 1,200,000 square-foot facilities will commence in January 2023 at the Georgia Ready for Accelerated Development Certified Belfast Commerce Park in Richmond Hill and finish in 2024. The plant will oversee the production of 900,000 EV power electric systems and 450,000 integrated charging control units per year. “We could not be more excited to welcome Mobis to our community,” said Development Authority of Bryan County Chairman Jon Seagraves.